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Warner Bros. Discovery said on June 9 that it will split into two publicly traded companies.

One entity, “Streaming & Studios,” will be led by CEO David Zaslav, while the other, “Global Networks,” will be headed by CFO Gunnar Wiedenfels.

"The cultural significance of this great company and the impactful stories it has brought to life for more than a century have touched countless people all over the world. It's a treasured legacy we will proudly continue in this next chapter of our celebrated history," Zaslav said in a <a href="https://www.prnewswire.com/news-releases/warner-bros-discovery-to-separate-into-two-leading-media-companies-302476325.html" target="_blank" rel="nofollow noopener">statement</a>.

"By operating as two distinct and optimized companies in the future, we are empowering these iconic brands with the sharper focus and strategic flexibility they need to compete most effectively in today's evolving media landscape."

Streaming & Studios, according to the statement, will include HBO, HBO Max, DC Studios, Warner Bros. Television, and Warner Bros. Motion Picture Group.

The splitting of the companies is not subject to taxation.

"This separation will invigorate each company by enabling them to leverage their strengths and specific financial profiles. This will also allow each company to pursue important investment opportunities and drive shareholder value," Wiedenfels said.

He said Global Networks "will focus on further identifying innovative ways to work with distribution partners to create value for both linear and streaming viewers globally while maximizing our network assets and driving free cash flow."

Global Networks will consist of news, sports, and entertainment networks. This includes CNN, which has been part of Warner Bros. since 2022, when AT&T merged with WarnerMedia.

Dividing the two companies will allow the achievement of three things, according to the statement.

One is to equip "each to be faster and more aggressive in pursuing opportunities that strengthen their competitive positions."

Another is to form "world-class management teams focused on creating greater strategic flexibility and focus so that each business can invest in and pursue its operational and financial goals."

The third benefit will enable both entities "to be more agile and attract a shareholder base aligned with its growth prospects and financial profiles," according to the statement.

"We committed to shareholders to identify the best strategy to realize the full value of our exciting portfolio of assets, and the board believes this transaction is a great outcome for WBD shareholders," Warner Bros Chair <span class="xn-person">Samuel A. Di Piazza Jr. said.</span> "This announcement reflects the board's ongoing efforts to evaluate and pursue opportunities that enhance shareholder value."

<em>From <a href="https://www.theepochtimes.com/business/warner-bros-discovery-to-split-into-2-companies-5869954">The Epoch Times</a></em>

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