Warner Bros. Discovery plans to split into two public companies by next year, the media giant announced Monday, the latest upheaval in the industry as consumers transition from cable to streaming.
WBD will separate into a streaming and studios company, which will include its movie properties and streaming service HBO Max, and a global networks company, which will include CNN, TNT Sports and Discovery, among other businesses.
On Monday’s call, WBD executives emphasized that each company would be “free and clear from a transaction perspective.” While the split is tax-free, executives would be willing to forgo that benefit to do the right deal, according to a person close to the matter who wasn’t authorized to speak about potential M&A publicly.
Zaslav has called for deregulation in a push for more consolidation in the media industry, which he has said is going through a period of “generational disruption.”
While the company has repaid $19 billion in debt, it still had just below $34 billion in net debt at the end of the first quarter, Wiedenfels said on Monday’s call.
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Warner Bros. Discovery to split into two public companies by next yearWarner Bros. Discovery plans to split into two public companies by next year, the media giant announced Monday, the latest upheaval in the industry as consumers transition from cable to streaming.WBD will separate into a streaming and studios company, which will include its movie properties and streaming service HBO Max, and a global networks company, which will include CNN, TNT Sports and Discovery, among other businesses.CEO David Zaslav will lead the streaming and studios company. Current CFO Gunnar Wiedenfels will become CEO of the global networks business.
Warner Bros. Discovery expects to complete the split by the middle of 2026.
On Monday’s call, WBD executives emphasized that each company would be “free and clear from a transaction perspective.” While the split is tax-free, executives would be willing to forgo that benefit to do the right deal, according to a person close to the matter who wasn’t authorized to speak about potential M&A publicly.Zaslav has called for deregulation in a push for more consolidation in the media industry, which he has said is going through a period of “generational disruption.”While the company has repaid $19 billion in debt, it still had just below $34 billion in net debt at the end of the first quarter, Wiedenfels said on Monday’s call.