Warner Bros. Discovery Splits Streaming and Cable Businesses

Warner Bros. Discovery Splits Streaming and Cable Businesses

Warner Bros. Discovery (WBD) has announced a significant restructuring of its business, dividing its operations into two distinct units: Global Linear Networks and Streaming & Studios. This strategic move, aimed at unlocking value and adapting to the rapidly evolving media landscape, marks a pivotal moment for the company. The Strategic Rationale The decision to split the company is driven by several key factors: Declining Cable TV Business: The traditional cable TV business has been steadily declining due to the rise of streaming services and cord-cutting. By separating its cable networks from its streaming and studio operations, WBD aims to mitigate the impact of this decline and focus on its growth areas. Maximizing Value: The split allows WBD to unlock the potential value of both its linear networks and streaming business. By separating these two distinct businesses, the company can tailor its strategies and allocate resources more effectively. Enhanced Strategic Flexibility: The r…