Warner Bros. Discovery has unveiled a new corporate structure designed to unlock additional shareholder value amid an evolving media landscape. The media and entertainment powerhouse plans to operate through two main divisions: global linear networks and streaming and studios. This significant restructuring is expected to better position the company in pursuing value-creation opportunities across both segments. In recent trading, Warner Bros.
Discovery's shares were climbing, reflecting a 16% increase. The global linear networks division is focused on maximizing profitability and free cash flow, while the streaming and studios segment aims to drive growth and returns. Previously, the company operated through three segments: studios, networks, and direct-to-consumer.
The studios segment comprises Warner Bros. Motion Picture Group, DC Studios, and Warner Bros. Television Group, among others. Meanwhile, networks include well-known brands such as CNN, Discovery Channel, and Cartoon Network. The direct-to-consumer segment encompasses the streaming services Max and discovery+. In August, Warner Bros.
reported incurring a substantial $9.1 billion goodwill impairment charge for the networks segment due to challenges within the US linear advertising market and other contributing factors. Chief Executive David Zaslav expressed optimism on Thursday regarding the new corporate structure, stating, "Our new corporate structure better aligns our organization and enhances our flexibility with potential future strategic opportunities across an evolving media landscape, helping us build on our momentum and create opportunities as we evaluate all avenues to deliver significant shareholder value." The company anticipates completing the implementation of this new structure by the middle of next year.
With recent fluctuations in the stock price showing positive recovery, investors remain hopeful about the transformative potential of these changes..