Warner Bros Discovery is close to spinning off its linear channels into a separate business, according to CNBC contributor David Faber.
Speaking on CNBC’s Squawk on the Street, Faber said he had been told to expect an announcement “in the not too distant future”.
The most likely scenario is that WBD creates two new companies, one with the linear channels, and a second with the more profitable studios business coupled with streaming service Max.
Faber noted that in Thursday’s financial report streaming, studios, linear, global linear segments, network segment all had their own page, suggesting that as far as the balance sheet was concerned, the calculations had already been made.
CNBC is itself due to be part of a spinoff as ultimate owner Comcast prepares to separate its own channels business into the newly named Versant.
WBD reported an additional 5.3 million streaming subscribers in the first quarter, taking the installed base to 122.3 million. WBD is anticipating having reached 150 million global subscribers by the end of 2026.
