Warner Bros. Discovery (WBD) is preparing to split into two companies, with one focused on its film and streaming operations and the other on cable networks like CNN and TNT, which are increasingly perceived as declining assets. This move reflects a broader trend in the industry, as seen with Comcast's recent strategy, indicating a collective recognition that traditional cable TV is in permanent decline. While these networks continue to be profitable, their long-term viability is questionable, raising concerns about future ownership and profitability in the evolving media landscape.
WBD has announced it's splitting into two companies: one for Warner's movie and TV studio and HBO Max, the other for cable networks like CNN and TNT.
WBD CEO David Zaslav stated, 'The global networks business is a real business,' but such remarks are rare when selling something people want to buy.
WBD’s move follows Comcast's similar strategy, both believing that splitting cable networks can lead to better growth opportunities for these declining assets.
As cable networks generate profit, the reality is that both WBD and Comcast acknowledge that the cable TV business is shrinking in the eyes of investors.
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