Warner Bros. Discovery Splits Streaming From Cable TV (reuters.com) 4
Warner Bros Discovery will split into two separate publicly traded companies -- one focused on its studios and streaming assets like HBO, DC Studios, and HBO Max, and the other on its declining cable networks including CNN and TNT Sports. The move, which unwinds the 2022 WarnerMedia-Discovery merger, is expected by mid-2026 and is "the latest unraveling of decades of media consolidation that created global conglomerates spanning content creation, distribution and in some cases, telecommunications," reports Reuters. From the report: The new streaming-and-studios company will include Warner Bros, DC Studios and HBO Max - the crown jewels of WBD's entertainment library. The networks unit, which will hold up to a 20% stake in its counterpart, will house CNN, TNT Sports and Bleacher Report. CEO David Zaslav will lead the streaming and studios unit, while CFO Gunnar Wiedenfels will head the networks unit. The separation will be structured as a tax-free transaction and is expected to be completed by mid-2026.
"We've continued to analyze how our industry is evolving," Zaslav told investors. "The right path forward became increasingly clear ... to separate global networks and streaming and studios into two independent, publicly traded companies." Most of the company's debt would be held by the global networks company. WBD had gross debt of $38 billion as of March. The company said it secured a $17.5 billion bridge loan from J.P. Morgan that it would use to restructure its debt.
"We've continued to analyze how our industry is evolving," Zaslav told investors. "The right path forward became increasingly clear ... to separate global networks and streaming and studios into two independent, publicly traded companies." Most of the company's debt would be held by the global networks company. WBD had gross debt of $38 billion as of March. The company said it secured a $17.5 billion bridge loan from J.P. Morgan that it would use to restructure its debt.
Why do I get the feeling... (Score:3)
That somehow the streaming division is the one that will fall off the face of the planet and we'll still be left with CNN doing its CNN thing.
Better idea (Score:2, Insightful)
What about breaking it up into two companies like this::
1. The part of the company that has all the WB and Discovery stuff.
2. The remainder of the company, to be run by David Zaslav.
Zaslav can do what he does best, find ways to defraud the taxpayer by claiming bogus deductions, which should net his division, which will create, buy, and sell nothing, billions of dollars, while the first part of the company could make movies and nature documentaries. Win-win for everyone!
Re: (Score:1)