Warner Bros. Discovery Announces Major Split into Two Distinct Companies
Warner Bros. Discovery (WBD) is embarking on a significant restructuring by splitting into two independent companies. Under the leadership of David Zaslav, WBD will separate its operations into two main divisions: Streaming & Studios and Global Networks. Zaslav will head the Streaming & Studios division, while CFO Gunnar Wiedenfels will take the reins as President and CEO of Global Networks. Both executives will maintain their current roles at WBD until the official separation takes place.
The company has stated its intention to execute this split in a tax-free manner concerning U.S. federal income tax. To ensure a smooth transition post-separation, WBD plans to establish arm’s length transition services and commercial agreements, aimed at preserving operational efficiencies during this period.
David Zaslav expressed his enthusiasm for this new chapter, highlighting the cultural significance and legacy of WBD. “The impactful stories that have emerged from this great company for over a century have resonated with countless individuals around the globe. We are committed to continuing this treasured legacy,” he said. “By evolving into two distinct and optimized companies, we empower our iconic brands with the focused strategy and flexibility needed to thrive in today’s dynamic media environment.”
The newly formed Streaming & Studios division will encompass Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, and HBO Max, along with their extensive film and television libraries. On the other hand, Global Networks will feature premier entertainment, sports, and news brands, including CNN, TNT Sports in the U.S., and various top free-to-air channels across Europe. The division will also include successful digital offerings like the Discovery+ streaming service and Bleacher Report (B/R).
This move reflects a broader trend in the media industry, as legacy companies adapt to changing landscapes. Recently, Lionsgate announced its split from Starz, and Comcast has spun off several of its cable networks into a new entity called Versant.
Stay tuned for more updates as Warner Bros. Discovery navigates this exciting transition, promising to bring even more compelling content and innovative experiences to audiences worldwide.
