WBD edges towards network spin-off?
December 12, 2024
Warner Bros Discovery (WBD) has announced a new corporate structure which it says is “designed to enhance its strategic flexibility and create potential opportunities to unlock additional shareholder value”.
Under this new corporate structure, Warner Bros. Discovery will serve as the parent company for two operating divisions:
- Global Linear Networks: A linear television business that operates WBD networks with news, sports, scripted and unscripted programming.
- Streaming & Studios: A globally scaled streaming platform and storied film and entertainment studios with a portfolio of celebrated intellectual property.
WBD expects the new corporate structure to enhance clarity and focus, with each division positioned to deliver on its specific strategic and operational objectives while executing on initiatives to further key priorities for consolidated WBD. Global Linear Networks will focus on maximising profitability and free cash flow to continue deleveraging, while Streaming & Studios will focus on driving growth and returns on increasing invested capital. The new corporate structure will also increase optionality to pursue further value creation opportunities for both divisions in an evolving media landscape.
“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 prioritize 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 organization 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.”
WBD intends to start the foundational steps immediately and to complete the implementation of the new corporate structure by mid-2025. In addition, the company expects to continue to evolve the Board to execute its strategy and drive future shareholder value creation.