Warner Bros. Discovery to restructure its business

[BlooMac]

Can't see how this would improve CN. The network was founded to showcase shows from its library and still relies on that to this day. Unless they strike a deal to still have access to WB's library, what exactly will they air? Cheap Canadian and Euro toons? Yeah, I'd rather they stick to endless nostalgia reruns than just turning it into a third-tier network like Universal Kids and Primo TV.

CN and Boomerang need to stick with the studio half of WBD, along with HBO and TCM. The T-Nets, CNN and Discovery networks will be just fine on their own though.

 

[Moe]

Can't see how this would improve CN. The network was founded to showcase shows from its library and still relies on that to this day. Unless they strike a deal to still have access to WB's library, what exactly will they air? Cheap Canadian and Euro toons? Yeah, I'd rather they stick to endless nostalgia reruns than just turning it into a third-tier network like Universal Kids and Primo TV.

CN and Boomerang need to stick with the studio half of WBD, along with HBO and TCM. The T-Nets, CNN and Discovery networks will be just fine on their own though.

HBO and Cinemax are very likely stay with WBD since almost all of Turner and Discovery owned channels like TBS, TNT, CN/AS, TruTV, Boomerang, TCM, Discovery Channel, TLC, HGTV and others are going to be spin off into separate company.

Streaming era is very unfortunate and cable channels in the future would be not owned by studios anymore, so studios don’t want to continue carrying cable channels if they don’t make enough money. Alternative to spin off into separate company would be complete shutdown of all cable channels like Disney did with many of international linear channels.

Comcast and Paramount are saying that they are going to divest their linear TV business. Disney considered few years ago but haven’t say anything.

I do feel that Disney is likely to close some of their channels, rather than divest like WBD, Paramount and Comcast are planning, so that what Disney is going to do will be many years away from now.

 

[RegularCapital]

Some further changes at WBD regarding networks, there's still some overlap with the studios:

Brett Paul will now also serve as chief operating officer for U.S. networks reporting to Warner Bros. Television Group head Channing Dungey, this includes Cartoon Network/Adult Swim (of which Michael Ouweleen is General Manager and President), he will now straddle duties at both the studio and networks divisions, which means he maintains his current role as president of Warner Bros. TV Group (which includes overseeing Sam Register's Warner Bros. Animation/Cartoon Network Studios) while taking on new oversight at the networks.

Warner Bros.’ Channing Dungey Sets Her Team as She Takes Over U.S. Networks, Expanding Roles for Brett Paul and Howard Lee

As she prepares to take over Warner Bros. Discovery U.S. Networks, chairman/CEO Channing Dungey is finalizing the division's new executive structure.

variety.com

If there's a split, the only thing that can separate are the Discovery brands, as they're unlike the rest of Warner Bros and not as integrated. As for Cartoon Network, they can't split the studio and networks/streamers, they're somewhat co-dependant on each other (even though programming can be licensed out), the studio needs a channel to air the shows, and the channel needs shows.

 

[Stumpos]

Can't see how this would improve CN. The network was founded to showcase shows from its library and still relies on that to this day. Unless they strike a deal to still have access to WB's library, what exactly will they air? Cheap Canadian and Euro toons? Yeah, I'd rather they stick to endless nostalgia reruns than just turning it into a third-tier network like Universal Kids and Primo TV.

CN and Boomerang need to stick with the studio half of WBD, along with HBO and TCM. The T-Nets, CNN and Discovery networks will be just fine on their own though.

I think the mindset was that the Cartoon Network originals also would've been sold with the network too.

 

[Moe]

I do think if Cartoon Network/Boomerang are going to be divested, there will be phased/unphased condition that would allow them to have a full access to WBD libraries at discounted price until they are bought by other company like SpinCo or something, so it has to be renegotiated for new access.

I thought CN/AS still have to pay licensing and residual to air shows and movies, even if it is under same company (WBD).

WBD has bad year - several of their movies flopped.

 

[themidnightlore]

Considering what @RegularCapital said, I think if WBD is selling stuff, it will be all from the Discovery side. But outside selling the MT TV channel to Hearst (that would make sense now) or the library that has to do with it, I have no other ideas of what could they divest to other parties.

 

[BlooMac]

I thought CN/AS still have to pay licensing and residual to air shows and movies, even if it is under same company (WBD).

They do, but it likely costs less for them and rights are easier to obtain for them than for a non-WBD company.

I think the mindset was that the Cartoon Network originals also would've been sold with the network too.

Pretty sure they're now part of Warner Bros. Television. Giving CN the rights to them would give them some backlog of shows they can freely air, but I think classic franchises like Looney Tunes, Tom and Jerry, and Scooby are also an important part of the channel's identity.

 

[Moe]

Considering what @RegularCapital said, I think if WBD is selling stuff, it will be all from the Discovery side. But outside selling the MT TV channel to Hearst (that would make sense now) or the library that has to do with it, I have no other ideas of what could they divest to other parties.

I guess that Discovery channels would be sold one by one like they did with MT TV.

If WB/Turner channels (and possibly DFC) are going to be divested so they could be sold at cluster (all channels together).

I'm surprised that Zaslav is OK with it and I thought Zaslav is very protective of Discovery channels.

 

[Stumpos]

They do, but it likely costs less for them and rights are easier to obtain for them than for a non-WBD company.

Pretty sure they're now part of Warner Bros. Television. Giving CN the rights to them would give them some backlog of shows they can freely air, but I think classic franchises like Looney Tunes, Tom and Jerry, and Scooby are also an important part of the channel's identity.

Then how come when Warner Bros sold Nickelodeon to Viacom in 1985, Nickelodeon didn't lose the rights to any shows they produced before 1985?

 

[Elijah Abrams]

Considering what @RegularCapital said, I think if WBD is selling stuff, it will be all from the Discovery side. But outside selling the MT TV channel to Hearst (that would make sense now) or the library that has to do with it, I have no other ideas of what could they divest to other parties.

I guess that Discovery channels would be sold one by one like they did with MT TV.

If WB/Turner channels (and possibly DFC) are going to be divested so they could be sold at cluster (all channels together).

I'm surprised that Zaslav is OK with it and I thought Zaslav is very protective of Discovery channels.

But if WBD sells the Discovery channels, then the company would end up becoming smaller, wouldn’t be called "Warner Bros. Discovery" anymore, and would end up becoming an acquisition target (Highly doubt Comcast is interested in it though), thus starting another regime change with more projects scrapped and layoffs happening.

 

[Moe]

But if WBD sells the Discovery channels, then the company would end up becoming smaller, wouldn’t be called "Warner Bros. Discovery" anymore, and would end up becoming an acquisition target (Highly doubt Comcast is interested in it though), thus starting another regime change with more projects scrapped and layoffs happening.

WBD will still own Discovery studios and Discovery libraries if Discovery channels get sold off or spun off.

WBD said that they are planning to divest linear TV business, likely spin off into separate company that WBD creates, akin to Comcast did with SpinCo. They didn't say about whichever cable channels would be affected and the news reported that possibly nearly all cable channels would be affected, exception of HBO and Cinemax.

 

[LinusFan303]

This isn't the same as whatever Comcast is doing this is one Company breaking things into two parts, mostly to mess with the stock. It's not a spinoff. If anything, most people won't even notice a change to anything.

If there's any sale going on , Zaslav, who probably regrets that fateful golf game where the idea of buying Warner comes up, would probably AOL it : spinning off all the Warner assets as separate company, taking the Discovery assets and going essentially back in time, and hoping some other person who doesn't see Warner is cursed, to pick up the Warner assets in the future. There's no reason for him to sell off any Discovery owned, when a) for streaming they don't have to worry about paying for licensing of anything those channels make, plus a lot of the Discovery networks are top 10 in cable (if it is dying™ ) ratings and that part wasn't a debt ridden mess.

A full spinoff would hurt Max, because it needs the current cable deals for sports and it needs Discovery programming, because that's kind of the popular stuff on Max. Same reason why NBC Universal is keeping Bravo and not putting that in their tax shelter - stock juicing company thing.

 

[Moe]

I just followed news coverage about 3 studios (Comcast, WBD and Paramount) plan to divest their linear TV business and based on definition from news report, WBD want to divest most of their linear TV business from their studio.

https://www.reuters.com/business/media-telecom/warner-bros-discovery-restructure-split-tv-streaming-businesses-into-two-units-2024-12-12/

I don't see this as AOL-style split. AT&T situation is definitely AOL-style split.

Even if Discovery haven't buy WB, they will be hurt by cord cutters and streaming era, also Discovery+ has less subscribers, however Discovery would be less mess than under WBD but future is uncertain if Discovery heavily depends on linear business.

The streaming era drove all major studios into stumble as they are trying to make revenues to replace the linear cable channels that they enjoyed for 4-5 decades. Have more movies flopped screw the studio further and they need money for not just operation, but it is for repayment to reduce the debt load that they borrowed too much.

 

[LinusFan303]

I just followed news coverage about 3 studios (Comcast, WBD and Paramount) plan to divest their linear TV business and based on definition from news report, WBD want to divest most of their linear TV business from their studio.

https://www.reuters.com/business/me...reaming-businesses-into-two-units-2024-12-12/

I read the straight press release where's less random dudes adding speculation

Warner Bros. Discovery Announces New Corporate Structure To Enhance Strategic Flexibility - Warner Bros. Discovery

Warner Bros. Discovery, a premier global media and entertainment company, offers audiences the world's most differentiated and complete portfolio of content, brands and franchises across television, film, streaming and gaming. The new company combines WarnerMedia's premium entertainment, sports...

www.wbd.com

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.

I'm not saying they could sale things but it doesn't seem at present they aren't going for a straight Comcast thing.

 

[Moe]

I read the straight press release where's less random dudes adding speculation

Warner Bros. Discovery Announces New Corporate Structure To Enhance Strategic Flexibility - Warner Bros. Discovery

Warner Bros. Discovery, a premier global media and entertainment company, offers audiences the world's most differentiated and complete portfolio of content, brands and franchises across television, film, streaming and gaming. The new company combines WarnerMedia's premium entertainment, sports...

www.wbd.com

I'm not saying they could sale things but it doesn't seem at present they aren't going for a straight Comcast thing.

Alright, we have to wait and see next year. WBD and some studios are well known for make ambiguous statements.

In my opinion based on interpretation, I just see WBD and Paramount are trying to copy Comcast's idea to divest linear TV business, that is just for me.

 

[AdrenalineRush1996]

I do feel that Disney is likely to close some of their channels, rather than divest like WBD, Paramount and Comcast are planning, so that what Disney is going to do will be many years away from now.

Eh, I don't know about that as I wouldn't rule out the possibility of Disney divesting some of their channels like their competitors are planning to dom

 

[Moe]

Eh, I don't know about that as I wouldn't rule out the possibility of Disney divesting some of their channels like their competitors are planning to dom

Understandable, I took my opinion based on international version of Disney owned channels few years ago and I feel like my opinion may be not reliable. Closures of linear Disney owned channels were bad news for members here.

I do think Disney is near 100% likely to keep ESPN and ABC.

 

[SpecialColorfull]

Eh, I don't know about that as I wouldn't rule out the possibility of Disney divesting some of their channels like their competitors are planning to dom

What does divest mean?

 

[Action!]

What does divest mean?

Sell.

 

[Moe]

What does divest mean?

Formal word for corporations use is divestiture (divest in short word) - it means sell business, asset or investment to other company.

It can be either good or bad, depends on companies.