Media conglomerate Warner Bros. Discovery announced on Monday that it would split into two public companies by next year, carving off its TV network operations from its streaming service.
The move to spin off one company devoted to streaming and a second devoted to traditional television comes as the company struggles with a decline in overall business.
The organisation said the new Streaming & Studios group would include Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO and HBO Max as well as their film and television libraries.
The Global Networks company will include CNN, TNT Sports, Discovery+ and other digital products.
Shares in the company jumped more than 9% ahead of the market opening.
Current Warner Bros. Discovery CEO David Zaslav will continue as the head of Streaming & Studios, while the company’s chief financial officer Gunnar Wiedenfels will become CEO of Global Networks.
Both executives will continue in their current positions until the company separates.
“By operating as two distinct and optimised 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 US media giant said the split would unlock value for shareholders and create opportunities for both businesses.
The split still needs final approval from the company’s board but is expected to be completed by the middle of next year.
Warner Bros. Discovery was created only three years ago after a merger between Warner Media and Discovery.
