Warner Bros. Discovery has announced plans to separate the company, in a tax-free transaction, into two publicly traded companies. The Streaming & Studios company will consist of Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, and HBO Max, as well as their film and television libraries. Global Networks will include entertainment, sports and news television brands around the world including CNN, TNT Sports in the U.S., and Discovery, free-to-air channels across Europe, and digital products such as the profitable Discovery+ streaming service and Bleacher Report (B/R), as the company has claimed in a statement.

David Zaslav, President and CEO of Warner Bros. Discovery, will serve as President and CEO of Streaming & Studios. Gunnar Wiedenfels, CFO of Warner Bros. Discovery, will serve as President and CEO of Global Networks. Both will continue in their present roles at WBD until the separation.

“The cultural significance of this great company and the impactful stories it has brought to life for more than a century have touched countless people all over the world. It’s a treasured legacy we will proudly continue in this next chapter of our celebrated history”, explained Zaslav. “By operating as two distinct and optimized companies in the future, we are empowering these iconic brands with the sharper focus and strategic flexibility they need to compete most effectively in today’s evolving media landscape”.

“This separation will invigorate each company by enabling them to leverage their strengths and specific financial profiles. This will also allow each company to pursue important investment opportunities and drive shareholder value”, affirmed Wiedenfels. “At Global Networks, we will focus on further identifying innovative ways to work with distribution partners to create value for both linear and streaming viewers globally while maximizing our network assets and driving free cash flow”.

“We committed to shareholders to identify the best strategy to realize the full value of our exciting portfolio of assets, and the Board believes this transaction is a great outcome for WBD shareholders”, added Samuel A. Di Piazza, Jr., Chair of the Warner Bros. Discovery Board of Directors. “This announcement reflects the Board’s ongoing efforts to evaluate and pursue opportunities that enhance shareholder value”.

The planned separation has the objective of unlocking value for shareholders and create opportunities for both new businesses to try to thrive by:

• Equipping each to be faster and more aggressive in pursuing opportunities that strengthen their competitive positions.
• Forming world-class management teams focused on creating strategic flexibility and focus so that each business can invest in and pursue its operational and financial goals.
• Enabling each company to try to be more agile and attract a shareholder base aligned with its growth prospects and financial profiles.