Warner Bros. Discovery Stock Jumps Following Major Business Restructuring
Warner Bros. Discovery, the parent company of CNN, announced on Thursday a significant restructuring plan that will divide its operations into two distinct divisions, separating its traditional cable networks from its growing streaming and studio businesses.
The new structure, set to take effect by mid-2025, will create two operating units: “Global Linear Networks”—which will oversee CNN, TBS, TNT, and other cable networks—and “Streaming & Studios,” which will include Max, as well as the company’s film and entertainment studios.
While the move stops short of spinning off cable assets entirely, similar to Comcast’s recent strategy, analysts suggest it could pave the way for comparable outcomes, including potential mergers or asset sales.
Warner Bros. Discovery’s stock (WBD) surged 11% following the announcement, signalling investor optimism about the company’s future direction. CEO David Zaslav described the restructuring as a means to enhance “flexibility with potential future strategic opportunities across an evolving media landscape.”
The shift comes as the media industry navigates a period of dramatic transformation, driven by the decline of traditional cable television and the explosive growth of streaming platforms. Analysts predict increased consolidation across the sector as companies adapt to changing audience preferences and competition from digital-first giants.
Warner Bros. Discovery’s move positions it to better balance its legacy cable assets while capitalising on the growth of streaming – a key focus in an increasingly fragmented media environment.