Warner Bros. Discovery has announced a new corporate structure that will see its linear TV business split from its streaming and studios divisions.
Warner Bros. Discovery will now serve as the parent company for two distinct operating divisions.
Global Linear Networks will be a linear television business that operates “some of the most renowned networks with compelling news, sports, scripted and unscripted programming.”
Streaming & Studios will be a streaming platform and film and entertainment studios “with a portfolio of the world’s most beloved intellectual property.”
Global Linear Networks will “focus on maximizing profitability and free cash flow to continue deleveraging,” while Streaming & Studios will focus on “driving growth and strong returns on increasing invested capital.”
“Since the combination that created Warner Bros. Discovery, we have transformed our business and improved our financial position while providing world class entertainment to global audiences,” said Warner Bros. Discovery President and CEO, David Zaslav. “We continue to prioritize ensuring our Global Linear Networks business is well positioned to continue to drive free cash flow, while our Streaming & Studios business focuses on driving growth by telling the world’s most compelling stories. Our new corporate structure better aligns our organization and enhances our flexibility with potential future strategic opportunities across an evolving media landscape, help us build on our momentum and create opportunities as we evaluate all avenues to deliver significant shareholder value.”
Warner Bros. Discovery expects to start the foundational steps immediately and to complete the implementation of the new corporate structure by mid-2025.
J.P. Morgan, Evercore, and Guggenheim Securities are serving as financial advisors to Warner Bros. Discovery and Kirkland & Ellis and Wachtell Lipton are serving as legal counsel.
Jon Creamer
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