Major restructure gets under way as company looks to enhance ‘clarity and focus’

Warner Bros. Discovery is to split its streaming and linear business in a major corporate restructure. 

Under the proposals, which have been signed off by the board, WBD will be the parent company of distinct operating divisions: streaming & studios and global linear networks. 

House of the Dragon

Streaming & studios will house Max, which the US giant describes as a “globally scaled streaming platform” alongside its “storied film and entertainment studios”. This includes Channing Dungey’s Warner Bros TV Group and Warner Bros Motion Picture Group.  

The division will focus on driving growth and strong returns on content creation and subscription growth which have received “increasing invested capital”.  

Global linear networks will incorporate WBD’s portfolio of global TV channels and networks across all genres of scripted, unscripted, sport and news and will focus on “maximising profitability and free cash flow” to reduce its debt and improve its financial stability. 

WBD will begin restructuring straight away and expects to complete the implementation of the new corporate structure by mid-2025. 

The move comes days after WBD outlined its plans for Max’s growth in the UK following the long-term deal it signed with Sky.

Senior execs had previously brushed off talks of a company split when it took a £7bn write-down of its linear business earlier this year.  

It is not yet clear if the move will lead to further lay-offs following widespread cutbacks in 2022 to its TV group, Max’s European operations and international teams.  

The company stated the rejigged corporate structure will enhance “clarity and focus”, with each division positioned to deliver on its specific strategic and operational objectives, while aiming to “create potential opportunities to unlock additional shareholder value”.  

David Zaslav - new

It is the latest restructure in WBD’s recent history since the historic merger to combine AT&T-owned WarnerMedia and was initiated in 2021 and completed in April 2022.  

WBD president and chief exec David Zaslav said: “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.  

“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.”