Warner Bros Discovery, the parent company of HBO MAX, CNN and TNT, announced on Monday that it will split into two companies.
This split will showcase the studios and streaming units of one company, House Warner, including HBO Max, DC Comics Universe, film production and distribution. The group will be led by WBD CEO David Zaslav.
The other will consist of WBD’s TV network, led by CFO Gunnar Wiedenfels.
“By operating as two differently optimized companies in the future, we are reinforcing these iconic brands the focus and strategic flexibility needed to compete most effectively in today’s evolving media situation,” Zaslav said in a statement.
The news confirms previous reports showing WBD is heading towards such a split as Zaslav was about to reset the company’s finances. In December, the company announced a restructuring that many viewed as a precursor to a full break.
This news comes from CNBC, MSNBC, E! , repeating Comcast’s announcement late last year that it will spin cable networks such as Syfy, Golf Channel, USA, and Oxygen. The new company will be called Versant. Comcast owns NBCuniversal, the parent company of NBC News.
WBD shares rose 9% on Monday in pre-market trading. During Zaslav’s approximately four-year tenure, stocks have fallen by about 66%.
