Warner Bros. Discovery is set to shake up its corporate structure, the company set to shed one of its current divisions and reworking the remaining two.
The result is two clearly separated divisions – one for its linear networks and the other for its streaming and studio businesses (eg. Warner Bros. Pictures, Max).
The new units will be called Global Linear Networks and Streaming & Studios. One caveat – HBO, despite being a network, will be housed within Streaming & Studios.
This has all led to spin-off and acquisition speculation with a statement from the company saying the restructure is “designed to enhance its strategic flexibility and create potential opportunities to unlock additional shareholder value”.
Other studios have adopted a similar approach in recent months, most notably NBCUniversal which is spinning off its linear networks into a separate company named SpinCo, all in an effort to quell the financial drag of linear networks which are seeing subscriber and ad revenue losses.
Warner Bros. Discovery already took a $9 billion write down on the value of its cable networks last summer. The new structure aims to be in place by mid-2025.
Source: THR
