From Investing.com: 2024-12-12 15:32:54

Warner Bros Discovery is separating its cable TV business from streaming and studio operations for a potential sale or spinoff by mid-2025. Shares rose 13% due to the more deal-friendly structure. Media companies are restructuring as cable TV revenue declines, with Comcast and Paramount Global making similar moves. Bank of America sees potential synergies with Comcast’s new spin-off and believes the streaming and studio assets will attract buyers.

Under the new structure, Warner Bros Discovery will house broadcast networks in “Global Linear Networks” and streaming platforms with film studios. CEO Marc DeBevoise believes this will set the stage for a sale or spin-off of the cable unit. Others caution that finding a buyer for the struggling linear TV networks may be challenging.

Warner Bros Discovery wrote down TV assets by $9 billion in August, citing uncertainty around fees and sports rights. A recent deal with Comcast aims to stabilize pricing in the pay TV market. CEO David Zaslav expects a more favorable deal-making environment under the incoming Trump administration, after failed merger talks with Paramount.



Read more at Investing.com: Warner Bros Discovery sets stage for potential cable deal by splitting operations By Reuters