Warner Bros. Discovery, under the leadership of CEO David Zaslav, has announced a significant split into two distinct entities: one focusing on streaming and Hollywood studios, and the other on cable properties. The streaming and studios company, to be led by Zaslav, will include HBOMax, Warner Bros. movie and television studios, while the cable business, including CNN, TBS, TNT, and Discovery, will be overseen by the current CFO, Gunnar Wiedenfels. Zaslav emphasized the cultural significance of the company’s legacy and the need for strategic flexibility in today’s media landscape.
The decision marks a shift in Zaslav’s initial vision for Warner Bros. Discovery following the $43 billion acquisition of Warner Media, which resulted in significant debt. The company’s struggles post-merger, including debt repayment efforts and market valuation decline, have led to this pivotal split. Despite challenges, Zaslav aims to expand the company’s global subscriber base for its streaming service while competing with industry giants like Netflix and Disney+.
The fate of CNN post-split remains uncertain, with speculation about potential buyers for Warner Bros. Discovery’s cable networks, including Comcast’s transformation model. Former TV executives question the future ownership of MSNBC and CNN, with possibilities ranging from Versant to private equity investors. Regardless of the outcome, a new owner would likely face decisions regarding retaining either MSNBC or CNN.
The transaction is expected to close next year, pending IRS assessment for tax implications. With political influences at play, including President Trump’s criticisms of CNN, the future landscape of Warner Bros. Discovery and its properties remains a topic of intrigue and speculation in the media industry.
