WARNER BROS. DISCOVERY ANNOUNCES NEW CORPORATE STRUCTURE TO ENHANCE STRATEGIC FLEXIBILITY
Warner Bros. Discovery (WBD) announced a major corporate restructuring, dividing the company into two distinct operating divisions: Global Linear Networks and Streaming & Studios. The Global Linear Networks division will focus on maximizing profitability and free cash flow for deleveraging, while Streaming & Studios will prioritize growth and returns on invested capital.
The reorganization, authorized by the Board of Directors, aims to enhance strategic flexibility and unlock additional shareholder value. The company expects to begin implementation immediately and complete the transition by mid-2025. The new structure is designed to provide better clarity and focus for each division's specific objectives while maintaining consolidated operations.
Warner Bros. Discovery (WBD) ha annunciato una significativa ristrutturazione aziendale, dividendo la compagnia in due divisioni operative distinte: Reti Lineari Globali e Streaming & Studi. La divisione Reti Lineari Globali si concentrerà sul massimizzare la redditività e il flusso di cassa libero per il deindebitamento, mentre Streaming & Studi darà priorità alla crescita e ai ritorni sul capitale investito.
La riorganizzazione, autorizzata dal Consiglio di Amministrazione, mira a migliorare la flessibilità strategica e a sbloccare ulteriore valore per gli azionisti. L'azienda prevede di iniziare immediatamente l'implementazione e completare la transizione entro metà del 2025. La nuova struttura è progettata per fornire maggiore chiarezza e focus sugli obiettivi specifici di ciascuna divisione mantenendo al contempo operazioni consolidate.
Warner Bros. Discovery (WBD) anunció una importante reestructuración corporativa, dividiendo la empresa en dos divisiones operativas distintas: Redes Lineales Globales y Streaming y Estudios. La división de Redes Lineales Globales se enfocará en maximizar la rentabilidad y el flujo de caja libre para la reducción de deuda, mientras que Streaming y Estudios priorizarán el crecimiento y los retornos sobre el capital invertido.
La reorganización, autorizada por la Junta Directiva, tiene como objetivo mejorar la flexibilidad estratégica y desbloquear un valor adicional para los accionistas. La compañía espera comenzar la implementación de inmediato y completar la transición para mediados de 2025. La nueva estructura está diseñada para proporcionar una mejor claridad y enfoque en los objetivos específicos de cada división, manteniendo al mismo tiempo operaciones consolidadas.
워너 브라더스 디스커버리(WBD)는 회사의 조직 개편을 발표하며 회사를 두 개의 독립적인 운영 부서인 글로벌 선형 네트워크와 스트리밍 및 스튜디오로 나누었습니다. 글로벌 선형 네트워크 부서는 감축을 위한 수익성과 자유 현금 흐름 극대화에 집중할 것이며, 스트리밍 및 스튜디오는 성장과 투자 자본에 대한 수익을 우선으로 할 것입니다.
이 재조직은 이사회의 승인을 받아 진행되며 전략적 유연성 향상과 주주 가치를 추가로 확보하는 것을 목표로 합니다. 회사는 즉시 시행을 시작하고 2025년 중반까지 전환을 완료할 것으로 예상하고 있습니다. 이 새로운 구조는 각 부서의 특정 목표에 대한 더 나은 명확성과 초점을 제공하면서 통합된 운영을 유지하도록 설계되었습니다.
Warner Bros. Discovery (WBD) a annoncé une importante restructuration de l'entreprise, divisant la société en deux divisions opérationnelles distinctes : Réseaux Linéaires Globaux et Streaming & Studios. La division des Réseaux Linéaires Globaux se concentrera sur la maximisation de la rentabilité et du flux de trésorerie disponible pour désendetter l'entreprise, tandis que Streaming & Studios mettra l'accent sur la croissance et les retours sur le capital investi.
Cette réorganisation, autorisée par le Conseil d'Administration, vise à améliorer la flexibilité stratégique et à libérer une valeur ajoutée pour les actionnaires. La société s'attend à commencer la mise en œuvre immédiatement et à achever la transition d'ici le milieu de 2025. La nouvelle structure est conçue pour offrir une meilleure clarté et un meilleur focus sur les objectifs spécifiques de chaque division tout en maintenant des opérations consolidées.
Warner Bros. Discovery (WBD) hat eine wesentliche Unternehmensumstrukturierung angekündigt, bei der das Unternehmen in zwei eigenständige Geschäftsbereiche unterteilt wird: Globale Lineare Netzwerke und Streaming & Studios. Der Bereich Globale Lineare Netzwerke wird sich darauf konzentrieren, die Rentabilität und den freien Cashflow zur Schuldenreduzierung zu maximieren, während Streaming & Studios Wachstum und Renditen auf das investierte Kapital priorisieren werden.
Die Reorganisation, die vom Vorstand genehmigt wurde, zielt darauf ab, die strategische Flexibilität zu erhöhen und zusätzlichen Aktionärswert zu erschließen. Das Unternehmen plant, die Umsetzung sofort zu beginnen und die Transition bis Mitte 2025 abzuschließen. Die neue Struktur soll eine bessere Klarheit und Fokussierung auf die spezifischen Ziele jeder Abteilung bieten, während die konsolidierten Operationen beibehalten werden.
- Strategic restructuring creates potential for increased shareholder value
- Enhanced focus on division-specific objectives and operational efficiency
- Global Linear Networks division structured to maximize profitability and free cash flow
- Streaming & Studios positioned for growth and improved return on investment
- Increased strategic flexibility in evolving media landscape
- Restructuring implementation period extends to mid-2025, indicating lengthy transition
- Potential execution risks associated with major organizational changes
- Additional costs likely associated with corporate restructuring
Insights
This strategic restructuring into two distinct divisions marks a significant shift in WBD's operational approach. The separation of Global Linear Networks from Streaming & Studios creates clearer accountability and operational focus, potentially setting the stage for future spin-offs or strategic transactions. The move to isolate the mature, cash-generating linear business from the growth-oriented streaming division mirrors similar strategies seen in the media industry.
The timing of this restructuring, amid rapid industry evolution and challenging market conditions, suggests WBD is positioning itself for maximum flexibility. The emphasis on "strategic opportunities" and "value creation" typically signals openness to various corporate actions, including potential partnerships, sales, or spin-offs. This structure could help optimize capital allocation and valuation metrics for each division's distinct business model.
This reorganization reflects the growing divergence between traditional TV and streaming business models in the media landscape. The Linear Networks division, while facing secular decline, remains a significant cash generator with
The mid-2025 implementation timeline suggests a careful, methodical approach to minimize operational disruption. This structure could help WBD better navigate the industry's transition period, potentially unlocking higher valuations by allowing investors to value each segment separately based on their distinct growth profiles and financial characteristics.
Company to Comprise Two Industry-Leading Divisions – Global Linear Networks and Streaming & Studios
Creates Optionality to Pursue Further Value Creation Opportunities for Both Divisions
Under this new corporate structure, Warner Bros. Discovery will serve as the parent company for two distinct operating divisions:
- Global Linear Networks: A premier linear television business that operates some of the most renowned networks with compelling news, sports, scripted and unscripted programming.
- Streaming & Studios: A globally scaled streaming platform and storied film and entertainment studios with a portfolio of the world's most beloved intellectual property.
Warner Bros. Discovery expects the new corporate structure to enhance clarity and focus, with each division positioned to deliver on its specific strategic and operational objectives while executing on initiatives to further key priorities for consolidated Warner Bros. Discovery. Global Linear Networks will focus on maximizing profitability and free cash flow to continue deleveraging, while Streaming & Studios will focus on driving growth and strong returns on increasing invested capital. The new corporate structure will also increase optionality to pursue further value creation opportunities for both divisions in an evolving media landscape.
"Since the combination that created Warner Bros. Discovery, we have transformed our business and improved our financial position while providing world class entertainment to global audiences," said Warner Bros. Discovery President and CEO, David Zaslav. "We continue to prioritize ensuring our Global Linear Networks business is well positioned to continue to drive free cash flow, while our Streaming & Studios business focuses on driving growth by telling the world's most compelling stories. Our new corporate structure better aligns our organization and enhances our flexibility with potential future strategic opportunities across an evolving media landscape, help us build on our momentum and create opportunities as we evaluate all avenues to deliver significant shareholder value."
Warner Bros. Discovery expects to start the foundational steps immediately and to complete the implementation of the new corporate structure by mid-2025.
In addition, the Company expects to continue to evolve the Board to execute its strategy and drive future shareholder value creation.
J.P. Morgan, Evercore, and Guggenheim Securities are serving as financial advisors to Warner Bros. Discovery and Kirkland & Ellis and Wachtell Lipton are serving as legal counsel.
About Warner Bros. Discovery
Warner Bros. Discovery is a leading global media and entertainment company that creates and distributes the world's most differentiated and complete portfolio of branded content across television, film, streaming and gaming. Available in more than 220 countries and territories and 50 languages, Warner Bros. Discovery inspires, informs and entertains audiences worldwide through its iconic brands and products including: Discovery Channel, Max, discovery+, CNN, DC, TNT Sports, Eurosport, HBO, HGTV, Food Network, OWN, Investigation Discovery, TLC, Magnolia Network, TNT, TBS, truTV, Travel Channel, MotorTrend, Animal Planet, Science Channel, Warner Bros. Motion Picture Group, Warner Bros. Television Group, Warner Bros. Pictures Animation, Warner Bros. Games, New Line Cinema, Cartoon Network, Adult Swim, Turner Classic Movies, Discovery en Español, Hogar de HGTV and others. For more information, please visit www.wbd.com.
Forward-Looking Statements
Information set forth in this communication, including statements as to the expected timing, completion and effects of implementing a new corporate structure for Warner Bros. Discovery constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements regarding the Company's expectations, beliefs, intentions or strategies regarding the future, and can be identified by forward-looking words such as "anticipate," "believe," "could," "continue," "estimate," "expect," "intend," "may," "should," "will" and "would" or similar words. These forward-looking statements are based on current expectations, forecasts, and assumptions that involve risks and uncertainties and on information available to Warner Bros. Discovery as of the date hereof. The Company's actual results could differ materially from those stated or implied due to such risks and uncertainties.
Forward-looking statements include, without limitation, statements about the benefits of the new corporate structure, including future financial and operating results, the future company plans, objectives, expectations and intentions, and other statements that are not historical facts. Such statements are based upon the current beliefs and expectations of WBD management and are subject to significant risks and uncertainties outside of our control. Among the risks and uncertainties that could cause actual results to differ from those described in the forward-looking statements are the following: the occurrence of any event, change or other circumstances that could give rise to the abandonment of the new corporate structure or pursuit of a different corporate structure; risks that any of the other conditions to the new corporate structure may not be satisfied in a timely manner; risks related to potential litigation brought in connection with the new corporate structure; uncertainties as to the timing of the implementation of the new corporate structure; risks and costs related to the new corporate structure, including risks relating to changes to the configuration of WBD's existing businesses; the risk that implementing the new corporate structure may be more difficult, time consuming or costly than expected; risks related to financial community and rating agency perceptions of WBD and its business, operations, financial condition and the industry in which it operates; risks related to disruption of management time from ongoing business operations due to the implementation of the new corporate structure; failure to realize the benefits expected from the new corporate structure; effects of the announcement, pendency or completion of the new corporate structure on the ability of WBD to retain and hire key personnel and maintain relationships with its suppliers, and on its operating results and businesses generally; and risks related to the potential impact of general economic, political and market factors on WBD as it implements the new corporate structure.
Discussions of additional risks and uncertainties are contained in WBD's filings with the Securities and Exchange Commission, including but not limited to the Company's most recent Annual Report on Form 10-K and reports on Form 10-Q and Form 8-K. WBD is not under any obligation, and each expressly disclaims any obligation, to update, alter, or otherwise revise any forward-looking statements, whether written or oral, that may be made from time to time, whether as a result of new information, future events, or otherwise. Persons reading this announcement are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date hereof.
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SOURCE Warner Bros. Discovery
FAQ
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