WBD’s Discovery Global could look to buy free-to-air European channels, says Zaslav
Warner Bros Discovery (WBD) boss David Zaslav says the forthcoming spin-off company, Discovery Global, will likely look at acquiring new channels when it officially launches next year.
Speaking at the Goldman Sachs Communacopia + Technology Conference on Wednesday, Zaslav said Discovery Global could be particularly interested in European free-to-air channels, which he described as a business that was doing “really well.”
WBD is in the process of splitting itself into two companies, with Discovery Global set to house entertainment, sport and news brands including CNN and TNT Sports in the US, Discovery and the free-to-air channels across Europe, and digital products such as the Discovery+ streaming service and sports site Bleacher Report.
Meanwhile, Warner Bros will house Warner Bros Television, Warner Bros Motion Picture Group, DC Studios, HBO and streaming service HBO Max, the film and television libraries, Warner Bros Games, Tours, Retail and Experiences, and studio production facilities in Burbank and Leavesden.
Zaslav will lead Warner Bros as president and CEO while WBD’s current chief financial officer Gunnar Wiedenfels will move to become president and CEO of Discovery Global. The separation is expected to close in mid-2026, though Zaslav said on Wednesday that the deal may be complete as early as April.
In its current structure, where all of the studios, streaming and channel assets sit under the same banner, Zaslav said deals to acquire additional legacy assets don’t necessarily make sense.
However, such deals could be meaningful contributors to Discovery Global once it has been separated from Warner Bros.
“[Discovery Global will] be able to really focus on taking advantage of their assets, rebuilding them for the future, but also maybe buying some low-multiple assets that could further solidify their ability to generate a lot of free cash flow long into the future,” said Zaslav.
While many have speculated that WBD is spinning off its linear networks with a view to eventually selling them, execs have claimed they are committed to investing in the linear assets over the long term.
Earlier in the summer, Wiedenfels said WBD will need to invest meaningfully in the spin-co to make it a success, noting that he is “building a group of assets here that is set up to thrive and continue to prosper on a standalone basis.”
“I do believe there are very significant pockets of growth and opportunity, and we’ll work really hard over the next half-year to identify those and get in position to deliver what I think is going to be a business with much more longevity than what the market sees right now,” he said during the company’s most recent earnings call.
Zaslav said the creation of the Discovery Global company will enable its leaders to figure out future paths for some of its most prized – and still-profitable – linear assets.
“What is Food Network of the future? How does CNN become a global business? How do we create a future on streaming for sports that really takes advantage of all the global sports that we have?” he said.
