HBO and CNN Owner to Split Streaming and Cable Businesses

Warner Bros Discovery, the owner of HBO Max and CNN, announced plans to split into two separate companies by mid-next year. This decision will break apart its studio and streaming business from its traditional cable television networks. The move comes in response to the changing media landscape, with streaming services on the rise and cable TV facing declining viewership.

The new Streaming & Studios business will house popular shows like Succession and The White Lotus from HBO Max, as well as the company’s film division under the leadership of Mr. Zaslav. On the other hand, the Global Networks company will oversee brands like CNN, Discovery, and TNT Sports, led by Warner Bros Discovery’s chief financial officer, Gunnar Wiedenfels.

Warner Bros Discovery President and CEO, David Zaslav, emphasized that the split aims to provide these iconic brands with a sharper focus and strategic flexibility to better compete in today’s media landscape. This decision follows the 2022 merger that brought Warner Bros Discovery together.

Although news of the split did not have a significant impact on Warner Bros Discovery’s stock market performance, analysts believe that separating the businesses will help investors better evaluate the value of each company. By simplifying the business structure, analysts can more accurately assess each company’s worth.

While CNN has experienced a decline in ratings, with fewer viewers tuning in during primetime hours, Warner Bros Discovery’s streaming platforms have fared better. The company ended the first quarter of this year with over 122 million subscribers. This split announcement comes after Comcast revealed its plans to separate its NBCUniversal cable television arm, reflecting the competitive nature of the media industry.

With the media landscape evolving rapidly, many firms are restructuring to emphasize their streaming or content businesses in order to differentiate and evaluate each part of their operation separately. The split of Warner Bros Discovery into two distinct companies reflects this trend in the industry.