Warner Bros. Discovery Stock Rises on TV Business Split from Streaming Studios

Warner Bros. Discovery, a major player in the entertainment industry, recently announced a big restructuring move in response to the changing landscape of streaming and cord-cutting. This decision led to a surge in their stock price by over 13% on Thursday—an exciting development for investors and fans alike.

The company revealed plans to split its operations into two separate divisions: one focusing on traditional TV with a mix of news, sports, scripted, and unscripted content, and the other dedicated to their global streaming platform and film studios, including Max. This strategic shift comes as many media companies grapple with the shift away from traditional TV towards the popularity of streaming services like Netflix.

CEO David Zaslav emphasized that this new corporate structure is designed to maximize profitability and cash flow for the TV unit, while driving growth and strong returns for the streaming and studio business. Warner Bros. Discovery’s lineup of channels, including CNN, TBS, and Food Network, will fall under the linear TV division, while their streaming platform will focus on expanding content and capital investments.

Looking ahead, Warner Bros. Discovery hinted at the possibility of spinning off its TV business, similar to Comcast’s recent announcement. This openness to exploring different options is part of the company’s commitment to delivering long-term value for shareholders. The new organizational structure is expected to take shape by mid-2025, signaling an exciting chapter for the company as they adapt to the evolving media landscape.