Media conglomerate Warner Bros. Discovery (WBD) on Thursday announced a major restructuring that will split its linear and streaming divisions into two companies, with an eye toward potential mergers and acquisitions next year.
Under the new corporate structure, WBD will serve as the parent company for two business units: Global Linear Networks and Streaming and Studios.
The company said it expects the new corporate structure to “enhance clarity and focus, allowing each division to achieve its specific strategic and operational goals.”
CEO David Zaslav said in a statement that he hopes the new structure will “increase our flexibility to capture potential future strategic opportunities across the evolving media landscape.” He said he is doing so.
The news comes as the company, which owns major news, sports and entertainment brands including CNN, Turner Sports and DC Comics, battles significant debt problems and faces increasing pressure from investors to cut costs. It was announced in
The company took a big hit earlier this year when it failed to secure the rights to broadcast NBA games, and like other major media companies, it has suffered heavy losses on its linear assets in recent quarters.
It also comes just weeks after rival Comcast announced plans to spin off its linear assets and increase investment in streaming services.
