Warner Bros. Discovery Splitting Into Two Companies In Seismic Shakeup

Warner Bros. Discovery is officially splitting into two companies. Warner Bros. has been behind some of the major films of the last few years, including Barbie and more. The company also owns HBO and Max, a leading streaming service behind hit series such as House of the Dragon and The White Lotus. This year, the company has already had some major theatrical release hits, including A Minecraft Movie and Sinners, Ryan Coogler's genre-blending horror movie that was an unexpected sensation upon its April release.

As per Warner Bros. Discovery, the hugely influential company is officially being split into two. These two groups will now be separate, publicly traded companies titled Streaming & Studios and Global Networks. The Streaming & Studios division will be made up of Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, and HBO Max. It will also host their movie and TV libraries. For Global Networks, this leaves premiere entertainment, sports, and news television brands, including CNN and more.

What This Means For Warner Bros. Discovery

This Is In Response To A Changing Market

With the split comes new breakdowns of creative control. Current president and CEO of Warner Bros. Discovery, David Zaslav, will become the President CEO of Streaming & Studios. Zaslav noted that the company has a "treasured legacy [they] will proudly continue in this next chapter." The new President and CEO of Global Networks will be Gunnar Wiedenfels, who currently serves as the CFO of Warner Bros. Discovery. Both will stay in their current roles until the split is finalized next year. Quotes from Wiedenfels, Zaslav, and Warner Bros. Discovery BOD Chair Samuel A. DiPiazza Jr. are found below:

David Zaslav: 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. 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.

Gunnar Wiedenfels: This separation will invigorate each company by enabling them to leverage their strengths and specific financial profiles. This will also allow each company to pursue important investment opportunities and drive shareholder value. At Global Networks, we will focus on further identifying innovative ways to work with distribution partners to create value for both linear and streaming viewers globally while maximizing our network assets and driving free cash flow.

Samuel A. Di Piazza, Jr.: We committed to shareholders to identify the best strategy to realize the full value of our exciting portfolio of assets, and the Board believes this transaction is a great outcome for WBD shareholders. This announcement reflects the Board's ongoing efforts to evaluate and pursue opportunities that enhance shareholder value.

These key members of the current Warner Bros. Discovery team have outlined several benefits of this split. The major decision comes at a time when legacy companies like Warner Bros. have to respond to a rapidly changing market. Mainly, streaming has led to the rapid downfall of linear television, which has left stock prices inconsistent and investors indecisive. This has led to similar shakeups such as Lionsgate's split from Starz. Now, Warner Bros. Discovery has become the latest company to find a way to dissociate its main brand with some of its linear TV work.

Our Take On The Warner Bros. Discovery Split

This Will Leave A Major Impact

Whereas the last two decades have seen some major mergers (e.g. Disney's purchasing of Fox), this is one of the most significant splits of the last few years. It will be interesting to see how the divide affects streaming platforms like Max. At present, Max will be under the Streaming & Studios division, but its relationship with Warner Bros. Discovery previously meant that major CNN events such as presidential debates and elections coverage could be aired on the platform. The split will impact not only this, but countless other elements of Warner Bros. as we know it.