Warner Bros Discovery is to bring in a new corporate structure that will see the creation of two separate divisions, Global Linear Networks and Streaming & Studios.
The never-ending cycle of merger and demerger is described as being “designed to enhance its strategic flexibility and create potential opportunities to unlock additional shareholder value.”
The two divisions will both come under the corporate wing of Warner Bros Discovery, but ultimately this could lead to a spin off of the channel assets. A sale of linear channels in the Nordics and Poland is already under consideration and is a reflection of similar moves within the big US networks. The future is clearly in streaming service Max and the production that feeds it.
“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 prioritise 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.”
Its expected the new structure will be in place by mid-2025.
Last month, Comcast confirmed the separation of NBCUniversal’s cable television networks including USA Network, CNBC, MSNBC, Oxygen, E!, SYFY and Golf Channel. It might be expected for a similar move to take place at Paramount Global once its new owners are in place.
