Warner Bros. Discovery, Inc. (NASDAQ: WBD) has announced a new corporate structure aimed at enhancing strategic flexibility and creating potential opportunities to unlock additional shareholder value. The company will now comprise two industry-leading divisions: Global Linear Networks and Streaming & Studios.
The new corporate structure is expected to enhance clarity and focus, with each division positioned to deliver on specific strategic and operational objectives. Global Linear Networks, a premier linear television business, will focus on maximizing profitability and free cash flow to continue deleveraging. Meanwhile, Streaming & Studios, a globally scaled streaming platform and storied film and entertainment studios, will focus on driving growth and strong returns on increasing invested capital.
Since the combination that created Warner Bros. Discovery, the company has transformed its business and improved its financial position, while providing world-class entertainment to global audiences. As a result, the company's President and CEO, David Zaslav, stated that the new corporate structure better aligns the organization and enhances flexibility with potential future strategic opportunities across an evolving media landscape.
Warner Bros. Discovery expects to begin implementing the foundational steps immediately and aims to complete the implementation of the new corporate structure by mid-2025. Additionally, the company anticipates further evolution of the board to execute its strategy and drive future shareholder value creation.
About Warner Bros. Discovery: Warner Bros. Discovery is a leading global media and entertainment company operating in more than 220 countries and territories and 50 languages. Its portfolio of branded content spans television, film, streaming, and gaming, including iconic brands such as Discovery Channel, HBO, CNN, TNT Sports, and others.
Financial advisors to Warner Bros. Discovery include J.P. Morgan, Evercore, and Guggenheim Securities, while Kirkland & Ellis and Wachtell Lipton serve as legal counsel. As a result of these announcements, the company's shares have moved 13.9% on the market, and are now trading at a price of $12.32. For the full picture, make sure to review Warner Bros. Discovery's 8-K report.
