Warner Bros Discovery has confirmed it will be splitting its business in two as part of new corporate structure that separates linear channels from its fledgling streaming business.
- Newly created Streaming and Studios division of WBD takes control of Max, its film studio and content library.
- Linear TV channels, including Quest and TNT Sports in the UK will come under Global Linear Networks division.
- Commentators suggest this could pave the way for a broader spin-off in the future.
Warner Bros Discovery (WBD) says the new structure will ‘enhance clarity and focus’, but will see the traditional linear TV channel business split internally from its growing streaming business.
Under the new structure, announced on Thursday, WBD will serve as the parent company of two distinct operating divisions from mid-2025.
- Global Linear Networks: A premier linear television business that operates some of the most renowned networks with compelling news, sports, scripted and unscripted programming.
- Streaming & Studios: A globally scaled streaming platform and storied film and entertainment studios with a portfolio of the world’s most beloved intellectual property.
As far as the UK and Ireland is concerned, this means channels like Discovery, HGTV, Quest, CNN and TNT Sports are likely to come under the umbrella of “Global Linear Networks”.
Meanwhile, streaming service Max, which launches here at the beginning of 2026, will come under “Streaming & Studios”. Compared to other streaming providers, WBD is relatively late to the game. The company previously had to either close or merge multiple smaller streaming operations it inherited when the company was first created out of the merger of Warner Bros and Discovery.
Global Linear Networks will focus on maximising profitability and free cash flow to continue deleveraging (i.e. reducing debt to reduce financial leverage). Streaming & Studios will focus on driving growth and strong returns on increasing invested capital.
Commenting on the announcement, Warner Bros. Discovery President and CEO, David Zaslav said:
“We continue to prioritize ensuring our Global Linear Networks business is well positioned to continue to drive free cash flow, while our Streaming & Studios business focuses on driving growth by telling the world’s most compelling stories. Our new corporate structure better aligns our organization and enhances our flexibility with potential future strategic opportunities across an evolving media landscape, help us build on our momentum and create opportunities as we evaluate all avenues to deliver significant shareholder value.”
Commentators have suggested the new structure may pave the way for a broader split of the business in the future. Comcast, owner of NBC, has already announced plans to spin off many of its linear channels, including CNBC, next year.
By: Marc Thornham | Image: WBD