In an attempt to boost its viewership and get a better reception from investors, the owner of CNN and HBO Max has decided to undergo a split into two companies by the middle of the next year. According to the BBC, the american conglomerate aims to separate its studio and streaming businesses from its more traditional cable TV services. This decision is made while keeping in mind that with every passing year, streaming is getting more and more viewers. On the other hand, the Cable TV audiences have been declining rapidly in recent years.
For instance, Warner Bros Discovery’s HBO Max has enjoyed recent success, thanks to shows including Succession, The White Lotus, and The Last of US, while the traditional cable TV channels like CNN have seen significant viewership loss recently.
Warner Bros Discovery will split the company into two. One will have the streaming, Studio business, and film division under its umbrella. The second company, Global Networks, will house the more traditional channels like CNN, Discovery, and TNT Sports, according to Gunnar Wiedenfels, the company’s CFO. The President and the CEO of the company, David Zaslav, said, “We are empowering these iconic brands with the sharper focus and strategic flexibility they need to compete most effectively in today’s evolving media landscape.”
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However, contrary to what Warner Bros Discovery thought, the company’s stock prices were down 3% on Monday.
Warner Bros Discovery has taken a page out of Comcast’s book, as the latter also announced a split last year, which saw streaming service Peacock and traditional channels like MSNBC and CNBC as two different entities. However, the breakup is still underway.
