Warner Bros. announces plans for a division split, with Discovery set to lead the cable sector.
Warner Bros. Discovery, the media giant that houses a plethora of beloved channels and streaming services, is set to undergo a significant transformation. The company has announced plans to split into two publicly traded companies, with one focusing on streaming offerings and the other leading the cable networks.
In this restructuring, Gunnar Wiedenfels, currently the CFO of Warner Bros. Discovery, is set for a substantial promotion. He will become the President and CEO of the cable division, which will be known as "Global Networks" in company documents. This new company will encompass Warner Bros. Discovery’s cable channel businesses such as CNN, TNT, TBS, Discovery, and more.
Wiedenfels, who has served as the CFO since the merger of Warner and Discovery in April 2022, will take on his first CEO role. His responsibilities will include overseeing a substantial portion of the company's debt and focusing on the cable and linear network side of the business.
The cable division aims to maximize network assets and drive free cash flow, while also pursuing important investment opportunities. Wiedenfels intends to find innovative ways to work with distribution partners to create value for both linear and streaming viewers globally.
However, it's "safe to assume that the majority" of the company's current debt load will go to the cable division, according to Wiedenfels. A "not-insignificant" portion of the debt will remain with the streaming side. The company has not yet disclosed who will make up the rest of the executive team of the new spinoffs.
David Zaslav, currently the president and CEO of Warner Bros. Discovery, will instead lead the Streaming & Studios division after the separation. The streaming division will not be debt-free after the split, as a portion of the debt will remain with it.
The tax-free split of Warner Bros. Discovery is expected to be completed in mid-2026. Prior to his role at Warner Bros. Discovery, Wiedenfels served as an executive at a German media company and started working as finance chief for Discovery in 2017.
In addition, Warner Bros. Discovery plans to take out $17.5 billion in short-term financing provided by J.P. Morgan ahead of the proposed split. Each of the new companies will have well-capitalized structures to support their businesses.
As the cable division prepares for this new chapter, it aims to leverage their strength and specific financial profiles to drive growth and success in the ever-evolving media landscape. With Wiedenfels at the helm, Global Networks is poised to make a significant impact in the world of cable and linear networks.
- Gunnar Wiedenfels, who has served as the CFO since the merger of Warner and Discovery, will take on his first CEO role as the President and CEO of the cable division, known as "Global Networks."
- Wiedenfels intends to find innovative ways to work with distribution partners to create value for both linear and streaming viewers globally, while also focusing on maximizing network assets and driving free cash flow.
- The cable division, with a well-capitalized structure, aims to leverage their strength and specific financial profiles to drive growth and success in the ever-evolving media landscape, as they prepare for this new chapter with Wiedenfels at the helm.
