Warner Bros. Discovery (WBD), the parent company of HBO Max, CNN, and TNT, announced a planned split into two separate companies to better address a fragmented audience landscape. The restructuring will create one company to manage Warner’s studios and streaming divisions, which include HBO Max and the DC Comics universe, under the leadership of WBD CEO David Zaslav. The second entity will focus on WBD’s TV networks, headed by CFO Gunnar Wiedenfels.
Zaslav emphasized that this split aims to empower iconic brands with increased focus and strategic flexibility to compete effectively in the evolving media environment. This announcement aligns with earlier speculation regarding WBD’s financial restructuring and follows a similar move by Comcast, which is spinning off its cable networks into a new entity named Versant.
In December, WBD initiated restructuring efforts that many interpreted as a precursor to this significant split. Following the announcement, WBD shares rose by 9% in pre-market trading, despite a notable 66% decline over Zaslav’s nearly four-year tenure. This split reflects a broader trend among major media conglomerates as they seek to navigate challenges posed by changing audience dynamics and competitive market conditions. The decision underscores a strategic pivot within WBD, aiming for more effective management of its diverse media assets moving forward.
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