Top Brass of Warner Bros Discovery (WBD) spoke about the imminent division that is expected to generate two new acquisition prospects and help guide the duration of M&A activities in the US media environment.
WBD CFO Gunnar on Monday’s call with analyst Wiedenfels said another company was “free and clear” in M&A conversations. He confirmed that the company will be separated into streaming & studios and global networks by mid-2026, subject to specific terms and approvals from the WBD board. WBD announced the split early on Monday morning.
The imminent separation effectively reversed the $430 billion merger between WarnerMedia and Discovery in 2022, resulting in a net result of WarnerMedia’s former owner AT&T selling Media Holdings.
Monday’s announcement was the latest example of media companies who recognize that their disease linear television business is weighing the growth area they want: streaming. Like the newly-titled Versant Cable Business and Comcast, which spun the split of Lionsgate-Starz, the WBD plan means that potential buyers and observers suggest that Apple could be one of them.
Since the merger in 2022, WBD shares have fallen by about 60%. Shares were just under 3% after the market shut down following the announcement of the split on Monday.
“The advantage of segregation into two scaled businesses is that WBD CEO David Zaslav, who foreseen that Donald Trump had foreseen a M&A deal after a later than expected period since returning to the White House.
Zaslav and Wiedenfels, which operate streaming & studios and global networks, respectively, said they have eliminated approximately $5 billion in “non-content” costs over the past three years. Wiedenfels has a major side of several layoffs It is primarily a cable television business, and both standalone companies said they will “continue to be very focused on efficiency.”
The executive said the global network will “strengthen the derevalization path of the global network” by holding up to 20% stake in streaming and studios. This remains a priority given that Wiedenfels assumes a large portion of WBD’s debt load, which is 1 billion people.
Zaslav has revealed that the number one revenue driver from Streaming & Studios will be streaming. He said: “The film business is probably the smallest part. It’s a huge hit.” Zaslav wants to watch Mike De Luca and Pam Abdy, co-heads of the Motion Picture Group, with a look at “unused” IPs. The co-head managed to overcome the tough start of the year and bounced back with the theatrical success of the Minecraft movies, sinners, and Final destination: Bloodline.
Sticking to the theme of IP, Zaslav continued: “We are extremely excited Superman (James Gunn reboots will begin on July 11th). We are almost wrapped Supergirl. For DC, there is a great plan that is a decade-long plan. Warner Bros. hits three times in a row, and we distribute F1 Over the next two weeks (partnership with Apple). We really love the film business. I think it’s important to have these films. Also, the A24 film has appeared on HBO Max, introducing actual discipline and is confident in its business, but perhaps it’s a more challenging business in terms of margins and swings. ”
Zaslav added, “The secret sauce for us is the highest quality content and library, along with local sports, along with local content, which will become our global recipe.” At another point in the call, Zaslav stated: “We’ve brought ‘HBO’ back (to HBO Max). People consider us to be the highest quality streaming service. pit And we’re doing it together Harry Potter. ”
Harry Potter The series is scheduled to begin production at Warner Bros. Studios Rebelden this summer, and WBD announced a lot of castings on Monday. The show is scheduled to premiere on HBO Max in 2026. Zaslav said the platform will be released in the UK and Ireland, Germany and Italy in early 2026.
Separately, Channing Dungey, chairman and CEO of Warner Bros. TV Group, has distributed internal memos to say they will remain in the studio after the split.
(TagStoTRASSLATE)Companies (T)Finance (T)US (T)Warner Bros.
