Overview of Warner Bros. Discovery’s Split
Warner Bros. Discovery (WBD) announced a significant restructuring on Monday, revealing that it will split into two separate companies. The split follows a move earlier this year when WBD CEO David Zaslav ended the company’s long-standing relationship with the National Basketball Association (NBA). One new company, temporarily called Streaming and Studios, will manage Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, and HBO Max. The other entity, Global Networks, will encompass WBD’s legacy cable networks, TNT Sports, digital products, and free-to-air channels in Europe.
Leadership Changes
As part of the restructuring, Zaslav will continue as CEO of Streaming and Studios, while current CFO Gunnar Wiedenfels will become the CEO of Global Networks. This division of assets is aimed at streamlining operations and focusing on distinct sectors within the company, with a clear emphasis on content creation and streaming versus traditional cable and international channels.
Impact on Live Sports and TNT
A major question arising from this split is the future of live sports, particularly the sports programming rights currently held by TNT. Zaslav acknowledged that U.S. sports, such as those featured on TNT, have not significantly driven HBO Max subscriptions, leading to the possibility of TNT Sports being separated from the streaming service. This move could allow the Global Networks division more flexibility in monetizing its sports rights, including potential licensing deals with other media companies or selling sports rights to entities like Comcast’s upcoming spinout, Versant.
Options for TNT Sports
Wiedenfels emphasized that the sports rights held by TNT, including major events like NCAA March Madness, the French Open, NASCAR, Major League Baseball, and the NHL, will be handled by Global Networks. The management team will have the discretion to decide how best to license or sell these rights, potentially to other platforms. Wiedenfels hinted that a merger of TNT Sports with another media company like Versant is also a possibility. However, any such deal will require careful consideration of tax implications after the split, which is expected to be completed by mid-2026.
Future of Sports Programming
While live sports content is expected to remain part of WBD’s international linear and streaming offerings, the restructuring may lead to a strategic shift in how these assets are managed. Wiedenfels noted that sports programming will continue to coexist across different platforms, but changes to licensing arrangements could occur as the company evaluates the best ways to monetize its digital and streaming sports rights.
