Warner Bros. Discovery Split Talk Heats Up

Following its first quarter results the other day, speculation is high that Warner Bros. Discovery is planning to split its divisions in two – the linear cable networks, and Warner Bros. Pictures/Max.

According to Reuters, shares surged more than 4% on the news after poor quarterly results saw nearly 6% in losses.

In its quarterly results, WBD revenue came in at $9 billion. Streaming revenues increased 9%, and ad revenue in that sector is up 35%. WBD added 5.3 million streaming subscribers in the January-March quarter, taking its total to 122.3 million.

Theatrical revenue dropped 27% and gaming revenue dropped 48%, in both cases due to the lack of major releases in that quarter.

CNBC’s David Faber says WBD has “already done all of the reapportioning necessary”. He adds: “Its become relatively clear to me from the many conversations that I’ve had that we could get some sort of an announcement in the not too distant future that they are planning to try to split the company.”

It follows on from Warner Bros. Discovery saying in December (via PR Newswire) it would undergo a corporate restructuring to separate its linear networks (i.e. CNN, TBS, TNT) from growth drivers like studios and its streaming platform Max. That internal restructuring will be complete by mid-2025.

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