Warner Bros. Discovery announces restructure for linear TV and streaming

Warner Bros. Discovery recently announced a big change in its corporate structure. It will now be divided into two main divisions: Global Linear Networks and Streaming & Studios. This move is all about enhancing strategic flexibility and creating more value for shareholders.

Under the new setup, the Global Linear Networks division will handle linear television networks like CNN, TBS, TNT, HGTV, and the Food Network. On the other hand, Streaming & Studios will take care of the Max streaming platform and Warner Bros. film studios.

This news comes shortly after Comcast revealed its plan to spin off its cable television networks, including CNBC, MSNBC, E!, Syfy, Golf Channel, USA, and Oxygen, into a separate company that will be publicly traded.

The shift in focus from linear TV to streaming services is a response to changing consumer behavior, as more people are choosing to cancel their cable subscriptions in favor of streaming. Analysts have pointed out that owning cable networks may have been holding back the share prices of companies like Warner Bros. Discovery and Comcast.

Warner Bros. Discovery’s Global Linear Networks division will concentrate on maximizing profitability and free cash flow to reduce debt, while Streaming & Studios will work on driving growth and strong returns on investments. The new structure is expected to be fully operational by mid-2025.

David Zaslav, President and CEO of Warner Bros. Discovery, expressed optimism about the change, stating that the new corporate structure will better align the organization, offering more flexibility in exploring strategic opportunities in the evolving media landscape. The goal is to deliver significant value to shareholders and continue building on the company’s success.