Warner Bros. Discovery Stock Jumps on Plan to Split TV Business From Streaming Studios

Warner Bros. Discovery (WBD) became the latest media giant hit by the rise of cord-cutting and streaming to announce a restructuring, with plans to split its TV business from its streaming and film studios.

The news drove shares up over 13% in early trading Thursday.

Warner Bros. Discovery said Thursday it will create two distinct operating divisions, one focused on global linear TV with “news, sports, scripted and unscripted programming” and the other housing its global streaming platform–which includes Max—and film studios.

Media firms have been struggling to navigate the decline of traditional TV operations as rivals like Netflix (NFLX) surge in popularity, while also navigating the transition to streaming. Comcast (CMCSA) last month announced plans to spin off its NBCUniversal cable TV networks, including channels like MSNBC, CNBC, and E!.

CEO Zaslav Suggests Company Is Open to All Options

The company said its linear TV unit “will focus on maximizing profitability and free cash flow to continue deleveraging.” Warner Bros. Discovery channels include cable TV outlets CNN, TBS, and Food Network. 

It also said the streaming and studio business will target “driving growth and strong returns on increasing invested capital.”

The media company opened the door to the possibility of spinning off its TV business, as Comcast is planning—noting it is open to all options to increase shareholder value.

“Our new corporate structure better aligns our organization and enhances our flexibility with potential future strategic opportunities across an evolving media landscape, help us build on our momentum and create opportunities as we evaluate all avenues to deliver significant shareholder value,” CEO David Zaslav said in a statement.

Warner Bros. Discovery said it expects the new corporate structure to be in place by mid-2025.