The board of directors at Warner Bros Discovery (WBD) has approved a plan to split the company’s global linear networks and streaming and studio operations into two separate divisions.
According to the company, the split will “enhance clarity and focus” with each division positioned to deliver on its specific strategic and operational objectives.
Global Linear Networks will focus on maximising profitability and free cash flow to continue deleveraging, while Streaming and Studios will focus on driving growth and strong returns on increasing invested capital, said WBD.
The new corporate structure will “also increase optionality to pursue further value creation opportunities for both divisions in an evolving media landscape”.
The company added it expects to start the foundational steps towards the separation immediately and to complete the implementation of the new corporate structure by mid-2025.
“Since the combination that created Warner Bros Discovery, we have transformed our business and improved our financial position while providing world class entertainment to global audiences,” said WBD President and CEO, David Zaslav.
“We continue to prioritise ensuring our Global Linear Networks business is well positioned to continue to drive free cash flow, while our Streaming & Studios business focuses on driving growth by telling the world’s most compelling stories. Our new corporate structure better aligns our organisation and enhances our flexibility with potential future strategic opportunities across an evolving media landscape, help us build on our momentum and create opportunities as we evaluate all avenues to deliver significant shareholder value.”
