Michelle Chapman, AP Business Writer
NEW YORK (AP) – Warner Bros Discovery has moved from streaming services to cable operations, creating two independent companies, and the number of people who “cut the code” will bring about lasting dramatic changes in the entertainment industry.
HBO, HBO MAX, Warner Bros. Television, Warner Bros. Motion Picture Group, and DC Studios will be part of the Streaming and Studios Company, Warner Bros. on Monday.
Cable companies include US CNN, TNT Sports and Discovery, top free channels across Europe, digital products such as Discovery+ Streaming Service and Bleacher Report.
The stock jumped 11% at the opening bell.
David Theslav, CEO of Warner Bros Discovery, will now be CEO of a company called Streaming & Studios. Gunnar Wiedenfels, Chief Financial Officer of Warner Bros. Discovery, will become CEO of a cable-focused entity, now known as the Global Network.
“By operating as two differently optimized companies in the future, we are reinforcing these iconic brands the focus and strategic flexibility needed to compete most effectively in today’s evolving media situation,” Zaslav said in a statement.
Just a few days ago, Warner Bros Discovery shareholders rejected the 2024 wage package for some executives, including Zaslav, who earned more than $51 million, in a vote that was symbolic because it was non-binding.
Warner Bros Discovery said in December that it is implementing a restructuring plan to become the parent company of two sales units, the Global Linear Network and Streaming & Studios. It was considered a preview of the separation, announced Monday.
Warner Bros Discovery was created three years ago by AT&T spinning WarnerMedia and merged with Discovery Communications in a $43 billion deal.
The cable industry has been attacked for years from streaming services such as Disney, Netflix, Amazon and Warner Bros. Own Hbo Max. The industry is also under pressure from internet plans offered by mobile phone companies. About the same size as the charter, Comcast spun many of its cable television networks in November, seeing many customers swapping cable television subscriptions for its streaming platform.
Charter Communications, which offered to acquire Cox Communications last month, was a $34.5 billion merger that combines two of the top three US cable companies.
The so-called “cordcut” was the industry’s cost millions of customers and was looking for ways to compete successfully.
The Warner Bros Discovery Split is expected to be completed by mid-next year. Final approval is required from the Warner Bros Discovery Board.
Original issue: June 9, 2025 9:14am EDT
