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Warner Bros. announced. Discovery on Monday that it will be divided into two companies by separating its studios and Broadcasting trade From cable TV networks.
The parent company of HBO and CNN is The division into two companies To help her compete better in the flow, as this step is expected to give the WBD broadcasting unit more space to expand its content production without being installed by low cable networks within the company.
David Zaslav, CEO of Warner Bros. will lead. Discovery, broadcasting work and studios after division, while CFO Gunnar Wiedenfels will lead the global network unit.
“By working as two distinct companies and sheets in the future, we enable these iconic brands with the most clear focus and strategic flexibility they need to compete more effectively in the scene of advanced media today.”
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Warner bros. Discovery by dividing its studio and flowing from its cable TV networks in a deal to complete next year. (Photographer: Yuki Iwamura / Bloomberg via Getty Images / Getty Images)
The division of companies comes a few years after the merger of 2022 from Warnermedia and Discovery and will be organized as a Exempicized tax transactionWhich is expected to be completed by mid -2016.
WBD shares increased by 8 % during morning trading.
The company laid the basis for a possible sale or extinguishing it Cable The assets in December, when it announced the separation of broadcasts and studio.
| index | protection | last | Changing | % Change |
|---|---|---|---|---|
| WBD | Warner Bruce. Discovery Inc. | 10.61 | +0.79 |
+7.99 % |
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This division will align the company with COMCAST, which revolves around most of its cable networks.
Jessica Reef Erlich’s research analyst Jessica Reef Elelich said that the cable TV assets in Warner Bruce are a “very logical partner” for the new company comCast.
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The CEO of Warner Bruce Discovery David Zasslav has announced the division. (Michael M. Santiago / Getty Images / Getty Images)
WBD also launched a tender on Monday The restructuring of her current debtsThe $ 17.5 billion bridge facility presented by Jpmorgan.
The bridge loan is expected to re -financing before the planned separation, and the company added that the International Networks Department will retain up to 20 % of the broadcasting and studios share, which it plans to invest to reduce its debts.
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Jpmorgan and Evercore WBD are recommended about the deal, while Kirkland & Elis works as legal advisers.
Reuters contributed to this report.
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