Do you remember all the way back in 2022 when Warner Bros. and Discovery decided to merge into Warner Bros. Discovery (WBD)? Well, now one of the largest media conglomerates in the country is splitting back into two companies. This is part of a larger plan to correct long-standing financial issues.
(Financial issues that the merger and scorched earth approach to content were supposed to solve.)
On June 9th, WBD announced they would split into two publicly traded companies. One company will be Streaming and Studios, consisting of Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, and HBO Max. The other, Global Networks, will house WBD’s entertainment, sports, and news television brands like CNN, TNT Sports, and Discovery.
This decision follows massive losses on Wall Street in the company’s broadcast television assets. Losses that are mostly being pinned on dwindling ad revenue in light of more consumers cutting cable. All while it’s still hemoraging money with trying to shift focus onto streaming platforms and digital content.
“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,” David Zaslav said . While also hinting that more operational changes are coming.
Considering MAX rebranded back to HBO Max in May, some of these changes may be just reverting back to how things were before the merger.
Warner Bros. Discovery splitting into two companies is expected to be finished by the end of 2026. We’ll keep you posted on updates about this situation as it develops.
