Warner Bros to split TV and streaming biz

Warner Bros Discovery has unveiled plans to split its TV networks, streaming and studio business into two units, according to the latest news reports.

The move may increase the chances of a breakup within the company that owns HBO and CNN.

The group announced its restructuring plans on Thursday, December 12, stating that it was creating a “new corporate structure” with the split. Its TV business will focus on maximising profitability and free cash flow while the streaming and studios business will be centred on driving growth and strong returns on increasing invested capital, said the company.

Warner Bros decision to restructure comes close on the heels of rival Comcast’s reorganisation.

The latter announced a new publicly traded company comprised of a strong portfolio of NBCUniversal’s cable television networks, including USA Network, CNBC, MSNBC, Oxygen, E!, SYFY and Golf Channel along with complementary digital assets including Fandango and Rotten Tomatoes, GolfNow and Sports Engine, through a tax-free spin-off. The well-capitalized independent company (“SpinCo”) will have significant scale as a pure-play set of assets anchored by leading news, sports and entertainment content.