Warner Bros. Discovery (WBD) has announced a major restructuring that will split its business into two distinct divisions: Global Linear Networks and Streaming & Studios. The restructuring is expected to be completed by mid-2025.

“Linear” refers to the traditional broadcasting model in which viewers watch programs scheduled at specific times on set channels.

The Global Linear Networks division will manage WBD’s cable TV business, including channels such as TNT and CNN. Meanwhile, the Streaming & Studios division oversees platforms such as Max and WBD’s film and television production studio.

The company also indicated that its board of directors will 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 faces declining viewership and advertising revenue as viewership shifts to on-demand streaming.

WBD is not the only media company making this move. Comcast recently announced it would spin off its cable network, and Disney CEO Bob Iger has also raised the possibility of spinning off Disney’s linear television network.

This reorganization follows a difficult period for WBD. Since the merger that created Warner Bros. Discovery in 2022, the company’s stock has languished, losing about 50% of its value. In August, WBD recorded a $9.1 billion write-down on the value of its linear TV business after losing the rights to NBA games and moving it to Amazon Prime Video. The deal had long been seen as an important source of advertising revenue and ratings for WBD’s TNT network.

market reaction

Some see the move as preparation for an eventual merger or partnership. Analysts at Bank of America say the restructuring will allow WBD to separate its profitable streaming and studio assets from its struggling TV network, potentially making the former a more attractive takeover target. he suggested.

News of the reorganization had an immediate impact on WBD stock, which rose as much as 16% on Thursday, reaching its highest level since late 2023. At the time of writing, the stock is trading at $12.35, up 14.35%.