Warner Bros. said. Discovery will be divided into two publicly traded companies, separating its studios and flowing from the syndrome cable television networks as the HBO and CNN parent company is looking to improve competition in the broadcasting era.
This separation is the latest contracts for unifying media that created global blocs that extend to the creation of content and distribution and in some cases, wireless and wireless communications. Relax The previous merger of Warnermedia and Discovery In 2022, it aims to develop broadcasting and studios without the retreating unit of networks it weighs.
New Broadcasting Company and Rodius Warner Bros. will include. And DC Studios and HBO Max – Crown Jewes of Warner Bros.’s Discovery’s Entertainment Library.
The network unit, which will retain a 20 percent share in its counterpart, will make the CNN, TNT SPORTS and Bleacher report.
The CEO of David Zaslav will lead the broadcasting and studios unit, while CFO Gunnar Wiedenfels will head the network unit. The separation will be organized as a tax -exempt treatment and is expected to be completed by mid -2016.
“We have continued to analyze how our industry has evolved,” Zasslav told investors. “The right path forward is increasingly clear … to separate global networks, broadcasts and studios into two independent companies publicly traded.”
Most of the company’s debts will be held by the International Network Company. Warner Bruce Discovery had a total debt of US $ 38 billion as of March. The company said it had obtained a $ 17.5 billion US bridge loan from JP Morgan that he would use it to restructure its debts.
The stocks decreased by nearly three percent in the middle of the day, after an increase of up to 13 percent in the hours that followed the advertisement.
Storage since the merger
Warner Bros. shares remain. Discovery decreased by almost 60 percent since the merger, which has been lost in cable subscribers, difficult competition for broadcasting, and investor concerns about the direction of the company full of debt.
The division will not suit the primary weakness at Warner Bruce Discovery.
If there is anything, Weser said, “It can make them worse by preferring financial engineering to focus on improving existing processes or following up new opportunities for growth … A deal like this can be found in the company until the transactions are closed.”
Initially, executive officials of the media expected a wave of unification during the era of US President Donald Trump, although this did not pass.
“For a series of reasons, it has proven more difficult than anyone believed,” said Jonathan Miller, an executive official of the veteran media who is the CEO of Integrated Media. “It seems that this year’s feature will be how we come to our home, and do what we can under our control.”
Comcast extinguishes most of the NBCunivesal cable portfolio In a separate companyOpposite. Lions Gate Entertainment completed the STARZ cable network separation from its film and television studio in May.
One of the veteran media executives, who spoke on the condition of anonymity, said that this separation from media blocs can pave the way for more deals.
Last week, about 59 percent of Warner Bruce’s shareholders voted at the annual meeting against executive wages packages, including Zaslav compensation of $ 51.9 million in 2024, in a consultative vote indicating dissatisfaction.
Like other entertainment companies, Warner Bros. struggles. Discovery with low categories and revenues in their cable networks. Consumers dropped paid payment subscriptions to broadcast services.
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