Warner Bros’ new corporate structure with separate linear network & streaming divisions

Warner Bros Discovery, Inc has announced that its Board of Directors has authorized the company to implement a new corporate structure designed to enhance its strategic flexibility and create potential opportunities to unlock additional shareholder value.

Under this new corporate structure, Warner Bros Discovery will serve as the parent company for two distinct operating divisions:

Global Linear Networks: A premier linear television business that operates some of the most renowned networks with compelling news, sports, scripted and unscripted programming.

Streaming & Studios: A globally scaled streaming platform and storied film and entertainment studios with a portfolio of the world’s most beloved intellectual property.

Warner Bros Discovery expects the new corporate structure to enhance clarity and focus, with each division positioned to deliver on its specific strategic and operational objectives while executing on initiatives to further key priorities for consolidated Warner Bros Discovery.

Global Linear Networks will focus on maximizing profitability and free cash flow to continue deleveraging, while Streaming & Studios will focus on driving growth and strong returns on increasing invested capital. The new corporate structure will also increase optionality to pursue further value creation opportunities for both divisions in an evolving media landscape.

“Since the combination that created Warner Bros Discovery, we have transformed our business and improved our financial position while providing world class entertainment to global audiences,” said David Zaslav, President and CEO, Warner Bros Discovery. “We continue to prioritize ensuring our Global Linear Networks business is well positioned to continue to drive free cash flow, while our Streaming & Studios business focuses on driving growth by telling the world’s most compelling stories. 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.”

Warner Bros Discovery expects to start the foundational steps immediately and to complete the implementation of the new corporate structure by mid-2025.

In addition, the company expects to continue to evolve the Board to execute its strategy and drive future shareholder value creation.

JP Morgan, Evercore, and Guggenheim Securities are serving as financial advisors to Warner Bros Discovery and Kirkland & Ellis and Wachtell Lipton are serving as legal counsel.

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