Company to Comprise Two Industry-Leading
Divisions – Global Linear Networks and Streaming &
Studios
Creates Optionality to Pursue Further Value
Creation Opportunities for Both Divisions
NEW
YORK, Dec. 12, 2024 /PRNewswire/ -- Warner
Bros. Discovery, Inc. (the "Company") (Nasdaq: WBD) today announced
that its Board of Directors has authorized the Company to implement
a new corporate structure designed to enhance its strategic
flexibility and create potential opportunities to unlock additional
shareholder value.
Under this new corporate structure, Warner Bros. Discovery will
serve as the parent company for two distinct operating
divisions:
- Global Linear Networks: A premier linear television
business that operates some of the most renowned networks with
compelling news, sports, scripted and unscripted programming.
- Streaming & Studios: A globally scaled streaming
platform and storied film and entertainment studios with a
portfolio of the world's most beloved intellectual
property.
Warner Bros. Discovery expects the new corporate structure to
enhance clarity and focus, with each division positioned to deliver
on its specific strategic and operational objectives while
executing on initiatives to further key priorities for consolidated
Warner Bros. Discovery. Global Linear Networks will focus on
maximizing profitability and free cash flow to continue
deleveraging, while Streaming & Studios will focus on driving
growth and strong returns on increasing invested capital. The new
corporate structure will also increase optionality to pursue
further value creation opportunities for both divisions in an
evolving media landscape.
"Since the combination that created Warner Bros. Discovery, we
have transformed our business and improved our financial position
while providing world class entertainment to global audiences,"
said Warner Bros. Discovery President and CEO, David Zaslav. "We continue to prioritize
ensuring our Global Linear Networks business is well positioned to
continue to drive free cash flow, while our Streaming & Studios
business focuses on driving growth by telling the world's most
compelling stories. Our new corporate structure better aligns our
organization and enhances our flexibility with potential future
strategic opportunities across an evolving media landscape, help us
build on our momentum and create opportunities as we evaluate all
avenues to deliver significant shareholder value."
Warner Bros. Discovery expects to start the foundational steps
immediately and to complete the implementation of the new corporate
structure by mid-2025.
In addition, the Company expects to continue to evolve the Board
to execute its strategy and drive future shareholder value
creation.
J.P. Morgan, Evercore, and Guggenheim Securities are serving as
financial advisors to Warner Bros. Discovery and Kirkland &
Ellis and Wachtell Lipton are serving as legal counsel.
About Warner Bros. Discovery
Warner Bros. Discovery is a leading global media and
entertainment company that creates and distributes the world's most
differentiated and complete portfolio of branded content across
television, film, streaming and gaming. Available in more than 220
countries and territories and 50 languages, Warner Bros. Discovery
inspires, informs and entertains audiences worldwide through its
iconic brands and products including: Discovery Channel, Max,
discovery+, CNN, DC, TNT Sports, Eurosport, HBO, HGTV, Food
Network, OWN, Investigation Discovery, TLC, Magnolia Network, TNT,
TBS, truTV, Travel Channel, MotorTrend, Animal Planet, Science
Channel, Warner Bros. Motion Picture Group, Warner Bros. Television
Group, Warner Bros. Pictures Animation, Warner Bros. Games, New
Line Cinema, Cartoon Network, Adult Swim, Turner Classic Movies,
Discovery en Español, Hogar de HGTV and others. For more
information, please visit www.wbd.com.
Forward-Looking Statements
Information set forth in this communication, including
statements as to the expected timing, completion and effects of
implementing a new corporate structure for Warner Bros. Discovery
constitute forward-looking statements within the meaning of the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. Forward-looking statements include statements
regarding the Company's expectations, beliefs, intentions or
strategies regarding the future, and can be identified by
forward-looking words such as "anticipate," "believe," "could,"
"continue," "estimate," "expect," "intend," "may," "should," "will"
and "would" or similar words. These forward-looking statements are
based on current expectations, forecasts, and assumptions that
involve risks and uncertainties and on information available
to Warner Bros. Discovery as of the date hereof. The Company's
actual results could differ materially from those stated or implied
due to such risks and uncertainties.
Forward-looking statements include, without limitation,
statements about the benefits of the new corporate structure,
including future financial and operating results, the future
company plans, objectives, expectations and intentions, and other
statements that are not historical facts. Such statements are based
upon the current beliefs and expectations of WBD management and are
subject to significant risks and uncertainties outside of our
control. Among the risks and uncertainties that could cause actual
results to differ from those described in the forward-looking
statements are the following: the occurrence of any event, change
or other circumstances that could give rise to the abandonment of
the new corporate structure or pursuit of a different corporate
structure; risks that any of the other conditions to the new
corporate structure may not be satisfied in a timely manner; risks
related to potential litigation brought in connection with the new
corporate structure; uncertainties as to the timing of the
implementation of the new corporate structure; risks and costs
related to the new corporate structure, including risks relating to
changes to the configuration of WBD's existing businesses; the risk
that implementing the new corporate structure may be more
difficult, time consuming or costly than expected; risks related to
financial community and rating agency perceptions of WBD and its
business, operations, financial condition and the industry in which
it operates; risks related to disruption of management time from
ongoing business operations due to the implementation of the new
corporate structure; failure to realize the benefits expected from
the new corporate structure; effects of the announcement, pendency
or completion of the new corporate structure on the ability of WBD
to retain and hire key personnel and maintain relationships with
its suppliers, and on its operating results and businesses
generally; and risks related to the potential impact of general
economic, political and market factors on WBD as it implements the
new corporate structure.
Discussions of additional risks and uncertainties are contained
in WBD's filings with the Securities and Exchange Commission,
including but not limited to the Company's most recent Annual
Report on Form 10-K and reports on Form 10-Q and Form 8-K. WBD is
not under any obligation, and each expressly disclaims any
obligation, to update, alter, or otherwise revise any
forward-looking statements, whether written or oral, that may be
made from time to time, whether as a result of new information,
future events, or otherwise. Persons reading this announcement are
cautioned not to place undue reliance on these forward-looking
statements which speak only as of the date hereof.
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SOURCE Warner Bros. Discovery