Warner Bros. Discovery shares soar as it restructures its business

CNN
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Warner Bros. Discovery, the corporate parent of CNN, announced Thursday that it is implementing a new corporate structure that separates its cable network from its growing streaming business.

The restructuring is not a spinoff of the cable assets Comcast recently announcedbut in the end it can have the same effect.

Warner Bros. Discovery will have two separate operating divisions: “Global Linear Networks” for CNN, TBS, TNT and other cable networks, and “Streaming & Studios” for Max and Company’s film and entertainment studios.

The company said the changes will take effect by mid-2025. Warner Bros. Shares of Discovery (WBD) rose 11% after the restructuring was announced.

The new structure will give Warner Bros Discovery “greater flexibility with potential future strategic opportunities in the evolving media landscape,” CEO David Zaslav said in a press release.

Wall Street analysts predict merger and acquisition activity in cable TV industry contracts in the age of streaming, especially as President-elect Donald Trump takes office with a deregulation agenda.

This is a developing story and will be updated.