Warner Bros Discovery to split linear arm from studios and streaming under corporate restructure

Warner Bros Discovery (WBD) has unveiled a new corporate strategy through which it will separate its global linear networks from its streaming and studios assets.

David Zaslav

The US-based media company said it will start the “foundational steps” immediately and aims to complete the separation by mid-2025.

WBD said the move, which comes on the heels of Comcast’s decision to spin off its US cable networks into a separate publicly traded company, will “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 Warner Bros Discovery.”

The Global Linear Networks division will be geared towards “maximising profitability and free cash flow to continue deleveraging,” while the Streaming and Studios arm will be aimed at “driving growth and strong returns on increasing invested capital,” said the company.

Crucially, the divisional separation of the linear assets from its studio and streaming business will “increase optionality” and create potential opportunities for M&As in the future.

“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 and 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.”