Warner Bros / Discovery To Split Into 2 Companies Cable To Spin Off to New Company (1 Viewer)

[Garysb]

https://www.nytimes.com/2025/06/09/business/media/warner-bros-discovery-split.html?unlocked_article_code=1.Nk8.son0.DHLajuGqW0OL&smid=url-share

Similar to what Comcast is doing, they are spliting their weaker cable assets into a separate company. So CNN, TNT, HGTV etc. will be in a separate company from Warner Bros .


David Zaslav, the chief executive of Warner Bros. Discovery, will lead the company’s streaming and studios business, which will include the streaming service HBO Max and Warner Bros. Motion Picture Group. The cable business, which will include CNN, will be run by Gunnar Wiedenfels, the chief financial officer of Warner Bros. Discovery.

Zaslav’s new Streaming & Studios outfit will consist of Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, and HBO Max, as well as their film and television libraries. Global Networks, meanwhile, will include premier entertainment, sports and news television brands around the world including CNN, TNT Sports in the U.S., and Discovery, top free-to-air channels across Europe, and digital products such as the profitable Discovery+ streaming service and Bleacher Report.

I am concerned about TCM if it is split from the Warner Bros. film libraries. Maybe it will stay with HBO at Warner Bros.


I shared the NY Times article so anyone can read it.

 

[[email protected]]

It's interesting, that the original reasons for the merger between Time Warner and Ted Turner, was for the cable stations, except TCM, Time Warner showed very little interest in in the film library, while the interest hasn't changed much, but now, those same cable stations have become their weaker assets.

 

[Robert Saccone]

What happens to all the streaming done by those channels? Magnolia?

 

[Garysb]

Per a Deadline article:

Warner Bros Discovery To Split Into Two Companies, Streaming & Studios And Global Networks

Warner Bros Discovery will split into two companies as Streaming & Studios will separate from Global Networks.

deadline.com

Legacy media is responding to major shifts in the business led by the rise of streaming and faster-than-anticipated decline of linear television that has left investors confused and stock prices floundering. Comcast has said it expects the initiative for its cable spinoff, called Versant, to be completed by late 2025. The idea is that cable network groups like these two, which still throw off significant cash and revenue, could merge or be acquired by buyers like private equity firms that would manage their decline, so these splits are likely to presage a period of media M&A.

Seems like this is just undoing the merger between Warner and Discovery with the Warner Cable channels except HBO going with the Discovery side. It doesn't appear that anything that was part of Discovery premerger is staying with Warner Bros.

NY Times article was updated to mention TCM will leave Warner Bros and go with the other cable channels. Not sure how they will be able to obtain the rights to broadcast movies and still air the films without commercial breaks .

 

[Sam Favate]

This sounds like a terrible idea. They mention they will open avenues for private equity to buy segments of the company. Those firms pick the bones and leave nothing. Zaslav has to be the worst CEO Warner has ever had.

 

[TravisR]

This sounds like a terrible idea. They mention they will open avenues for private equity to buy segments of the company. Those firms pick the bones and leave nothing. Zaslav has to be the worst CEO Warner has ever had.

DC Comics (the comic book company) is going to be under Zaslav's control so I expect DC's 90 year run to not hit that century mark.

 

[mskaye]

What happens to all the streaming done by those channels? Magnolia?

Magnolia is a partnership but it would be part of the "global tv networks" now. This is all just a shit show. Trust me. Very depressing. There are no winners here except for the major stockholders.
Give this a listen but be prepared.

 

[Garysb]

I imagine the Discovery programming on HBOMAX will be dropped from that service unless they make a deal to continue to carry it with the new company. Discovery+ streaming service is going to the new company and they may become the exclusive streaming service for Discovery cable channels. The TCM movies should stay on HBOMAX as they will still be owned by Warner Bros. They may have to stop branding them as TCM unless agreement is made to continue to use the name. The new company will own 20% of the old company, Warner Bros., so that may make it easier to share programming. The new company is being saddled with the majority of Warner Discovery debt per reports, so they will have a need to generate income to service the debt in addition to cutting costs as in employees.

 

[mskaye]

I imagine the Discovery programming on HBOMAX will be dropped from that service unless they make a deal to continue to carry it with the new company. Discovery+ streaming service is going to the new company and they may become the exclusive streaming service for Discovery cable channels. The TCM movies should stay on HBOMAX as they will still be owned by Warner Bros. They may have to stop branding them as TCM unless agreement is made to continue to use the name. The new company will own 20% of the old company, Warner Bros., so that may make it easier to share programming. The new company is being saddled with the majority of Warner Discovery debt per reports, so they will have a need to generate income to service the debt in addition to cutting costs as in employees.

Good luck with that last part.

 

[Andrew Budgell]

According to this Variety exclusive, TCM will stay with Zaslav's side of Warner Bros: https://variety.com/2025/film/news/turner-classic-movies-staying-warner-bros-zaslav-1236450164/

 

[mskaye]

According to this Variety exclusive, TCM will stay with Zaslav's side of Warner Bros: https://variety.com/2025/film/news/turner-classic-movies-staying-warner-bros-zaslav-1236450164/

That's a new development and it is great news. I was fearing for the long term survival of TCM if it was going to be grouped with the other diminishing cable networks.

 

[Robert Crawford]

Yup, great news indeed.

 

[Angelo Colombus]

One of the reasons i still have DirecTV is because they have TCM.