Warner Bros. Discovery (WBD) announced in a declaration which will be divided into two companies listed on the stock exchange until the middle of 2026, in response to the change in consumer habits, which have changed cable TV for streaming.
David Zaslav, WBD CEO, spoke of “having a more accurate focus and strategic flexibility that we need to compete more effectively” to justify the decision to divide the company.
How Warner will be like with the division
The decision follows a trend in the sector. Comcast, for example, is separating its TV networks from Nbuniversal to train the Versant company. Both initiatives reflect the challenges addressed by the traditional model of salary -TV model and the effort to give greater attention and flexibility to the operations.
Although the linear networks still generate a significant box, especially with live sports, their content has not increased the growth of streaming platforms.
WBD has already dealt with a low accounting of $ 9.1 billion in this segment and part of the relevant cash flow has been used to finance the development of HBO Max.
Separate debt
The division will also have financial implications. The net debt of the company, today at around $ 34 billion, will be distributed among the new entities. Most will have global networks, which will remain highly profitable.
The market reacted positively to the announcement, with the shares of the WBD increasing 8% on Monday. The company sees separation as a way to allow greater strategic attention, any mergers and greater efficiency in the competitive scenario of the media.
The post streaming on the one hand, the TV on the other: Warner announces that STORICAL SLIP appeared for the first time in digital look.
Source: Olhar Digital
Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.
