Warner Bros. Discovery (WBD), one of the world’s most prominent media conglomerates, announced a significant restructuring of its operations on Thursday, splitting its linear and streaming businesses into two separate companies.
The move creates two divisions under the WBD umbrella: Global Linear Networks and Streaming and Studios. The reorganization aims to position the company to navigate the rapidly changing media landscape better and seize opportunities for mergers and acquisitions in 2025, reported The Hill.
The decision reflects WBD’s strategy to enhance clarity and focus within its operations.
“This new structure enhances our flexibility with potential future strategic opportunities across an evolving media landscape,” CEO David Zaslav said in a statement.
The company believes that separating its traditional linear assets from its growing streaming and studio businesses will allow each division to concentrate on its specific operational goals and respond more effectively to market demands.
This major overhaul comes at a challenging time for WBD, which has been grappling with substantial debt and mounting pressure from investors to cut costs. Earlier this year, the company suffered a setback when it failed to secure the coveted broadcasting rights for NBA games—a loss that hurt revenue potential and reduced the company’s leverage in the sports entertainment arena. Linear TV assets, including CNN and Turner Sports, have also faced significant losses in recent quarters, mirroring trends across the broader media industry.
WBD’s restructuring is not occurring in isolation.
The announcement follows similar moves by competitors like Comcast, which recently revealed plans to divest some of its linear assets and invest more heavily in streaming. The media sector is undergoing a seismic shift as consumers increasingly opt for on-demand streaming platforms over traditional cable and satellite services. For WBD, the new structure could provide the flexibility needed to adapt to these shifts while keeping its options open for strategic partnerships or mergers.
The company’s streaming arm, which includes HBO Max, has seen mixed success.
While its original programming garners critical acclaim and a loyal subscriber base, the streaming market’s saturation and fierce competition have created profitability challenges. Rivals like Netflix and Disney+ have consistently outpaced WBD in subscriber growth and international market penetration. The restructuring could be WBD’s way of streamlining its operations to focus resources more effectively on growth areas.
The decision also underscores broader challenges facing traditional media companies.
Linear TV, once the cornerstone of media empires, has steadily declined due to cord-cutting and shifts in advertising dollars. While streaming has emerged as a growth driver, it comes with its own challenges, including rising content costs and diminishing returns as new platforms flood the market. Analysts see WBD’s decision as a calculated gamble to stabilize its core operations while adapting to future industry trends.
As the dust settles, all eyes will be on how WBD executes its new strategy and whether it can navigate the turbulent waters of the modern media landscape.