Warner Bros. Discovery (WBD) is officially splitting into two separate companies.
The David Zaslav-led conglom had signaled the move with an internal reorganization that grouped its businesses into Streaming & Studios and Global Networks. earlier this year. Today it announced the separation will become an actual split along the lines of what Comcast has underway, spinning out its cable networks from NBCUniversal, in a seismic reconfiguration of the U.S. media business.
Zaslav will lead Streaming & Studios while CFO Gunnar Wiedenfels takes on the President and CEO fo Global Networks role. Both will continue in their present roles at WBD until the separation.
WBD said it “intends to separate the businesses in a tax-free manner for U.S. federal income tax purposes.” “The companies plan to implement arm’s length transition services and commercial agreements post-separation to facilitate the transition and maintain continued operational efficiencies,” it added.
“The cultural significance of this great company and the impactful stories it has brought to life for more than a century have touched countless people all over the world. It’s a treasured legacy we will proudly continue in this next chapter of our celebrated history,” said Zaslav. “By operating as two distinct and optimized companies in the future, we are empowering these iconic brands with the sharper focus and strategic flexibility they need to compete most effectively in today’s evolving media landscape.”
Zaslav’s new Streaming & Studios outfit will consist of Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, and HBO Max, as well as their film and television libraries. Global Networks, meanwhile, will include premier entertainment, sports and news television brands around the world including CNN, TNT Sports in the U.S., and Discovery, top free-to-air channels across Europe, and digital products such as the profitable Discovery+ streaming service and Bleacher Report (B/R).
Legacy media companies have been making similar moves of late. Lionsgate’s split from Starz was confirmed last month while Comcast spun out a number of its cable networks into a new company, Versant.
