Warner Bros. Discovery, the parent company of HBO Max, CNN and TNT, announced Monday it would split into two companies, the latest move by a major media conglomerate to reckon with a fracturing audience landscape.
The split will see one company house Warner’s studios and streaming units, which include HBO Max, the DC Comics universe, and film productions and distributions. That group will be led by WBD CEO David Zaslav.
The other will comprise WBD’s TV networks and will be led by CFO Gunnar Wiedenfels.
“By operating as two distinct and optimized companies in the future, 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,” Zaslav said in a statement.
The news confirms earlier reporting that had indicated WBD was heading toward such a split, as Zaslav looked to reset the company’s finances. In December, the company announced restructuring that many saw as a precursor to a full break.
The news echoes an announcement by Comcast late last year that it was spinning out its cable networks, including CNBC, MSNBC, E!, Syfy, Golf Channel, USA and Oxygen. That new company is set to be called Versant. Comcast owns NBCUniversal, the parent company of NBC News.
WBD shares were up as much as 9% in pre-market trading Monday. Over the course of Zaslav’s approximately four-year tenure, shares are down some 66%.