Warner Bros. Discovery (WBD) has announced a major restructuring that will split its operations into two separate units: Global Linear Networks and Streaming & Studios. The reorganization is expected to be completed by mid-2025.
“Linear” refers to the traditional broadcast model in which viewers watch programs scheduled at specific times on a defined channel.
The Global Linear Networks division will manage WBD’s cable television operations, including channels like TNT and CNN. Meanwhile, the Streaming & Studios division will oversee platforms such as Max, as well as WBD’s film and television production studios.
The company also indicated that its board of directors would undergo changes.
WBD CEO David Zaslav described the reorganization as a move to create “potential future strategic opportunities.”
It’s not you, it’s me
The cable industry has faced declining viewership and advertising revenue as audiences migrate to on-demand streaming.
WBD is not the only media company to make such a decision. Comcast recently announced the splitting of its cable networks, and Disney CEO Bob Iger has also discussed the possibility of splitting Disney’s linear television networks.
The restructuring follows a difficult period for WBD. Since the merger that created Warner Bros. Discovery in 2022, the company’s stock has struggled, losing about 50% of its value. In August, WBD took a $9.1 billion writedown on the value of its linear television operations after losing the rights to NBA games, which were moved to Amazon Prime Video. The deal had long been seen as a vital source of advertising and viewership revenue for WBD’s TNT network.
Market reaction
Some see this decision as preparation for possible mergers or partnerships. Bank of America analysts suggested the restructuring would allow WBD to separate its most lucrative streaming and studio assets from its struggling television networks, potentially making the former a more attractive acquisition target.
News of the restructuring had an immediate impact on WBD stock, which rose 16% on Thursday, reaching its highest level since late 2023. At the time of writing, it was trading up 14 .35% to $12.35.
