Warner Bros. Discovery announces plans to split in two
Warner Bros. Discovery announces plans to split in two
WBD will separate into two firms, one focused on movies and streaming, the other on linear networks.
Warner Bros. Discovery is making a significant move that could position it for the future. On Monday, the company officially announced its plans to split into two separate publicly traded companies. It’s a move that one Wall Street analyst has been recommending for months, and it could allow the company to enhance its focus on streaming going forward.
Key Details:
- Split focus: WBD is dividing into companies focused on streaming and linear networks.
- Discover more: The discovery+ streaming service is not included in planned WBD’s streaming company.
- Good recommendation: Jessica Reif Ehrlich of Bank of America has been advocating for this move by WBD for months.
In its announcement, WBD said it was dividing itself into a “Streaming & Studios” company, and a Global Networks company. Streaming & Studios will include Warner Bros. Television, Warner Bros. Motion Picture Group, HBO and Max, D.C. Studios, and the company’s film and television libraries.
Global Networks will include WBD’s cable channels like CNN and its new streaming service, TNT Sports in the United States, Discovery, Bleacher Report, and the discovery+ streaming service, as well as free-to-air channels in Europe. The inclusion of discovery+ in Global Networks is a fascinating choice, and could be an indication that WBD doesn’t prioritize this streamer as highly as it does Max.
“The cultural significance of this great company and the impactful stories it has brought to life for more than a century have touched countless people all over the world. It’s a treasured legacy we will proudly continue in this next chapter of our celebrated history,” WBD CEO David Zaslav said. “By operating as two distinct and optimized companies in the future, we are empowering these iconic brands with the sharper focus and strategic flexibility they need to compete most effectively in today’s evolving media landscape.”
The main mission of Streaming & Studios will be to scale up HBO Max and continue to churn out high-quality movies and HBO programming. Global Networks could be intended to attract buyers to assets that WBD no longer thinks of as key to its future; there was no official intention announced to sell any WBD cable channels, but the company did say that the split would allow the two companies to be “faster and more aggressive in pursuing opportunities that strengthen your federal positions.”
Bank of America analyst Jessica Reif Ehrlich has been recommending this move for months, and reiterated her thoughts that a split was the right step for WBD last week. WBD re-shuffled its corporate divisions in December, a move that helped to pave the way for its decision to break into two companies.
Comcast recently separated into two firms as well, with one focused on cable and the other on studio and streaming. More and more legacy media companies are seeing the wisdom in separating their businesses to focus more heavily on streaming, acknowledging that their financial futures are no longer tied to their cable networks.
HBO Max
HBO Max is a subscription video streaming service that gives access to the full HBO library and exclusive Max Originals. There are hubs for content from TLC, HGTV, Food Network, Discovery, TCM, Cartoon Network, Travel Channel, ID, and more. Watch hit series like “The Last of Us,” “House of the Dragon,” “Succession,” “Curb Your Enthusiasm,” and more. Within HBO Max, B/R Sports allows users to watch live NBA, MLB, NHL, March Madness, and NASCAR events.