Warner Bros Discovery (WBD) has recently made a significant announcement regarding its corporate setup. This new structure is aimed at enhancing strategic flexibility and opening up potential avenues to boost shareholder value.

Enhancing Business with a New Structure

Under this fresh corporate framework, Warner Bros. Discovery takes on the role of the parent company for two distinct operating divisions. The first division is the Global Linear Networks, which operates as a linear television business. It encompasses WBD networks that offer a diverse range of programming including news, sports, scripted, and unscripted content. This division focuses on maximizing profitability and generating free cash flow to facilitate the deleveraging process.The second division is the Streaming & Studios. It operates as a globally scaled streaming platform along with renowned film and entertainment studios. This division holds a portfolio of highly celebrated intellectual property. It concentrates on driving growth and achieving returns on the increasing invested capital.The new corporate structure is expected to bring greater clarity and focus. Each division is positioned to fulfill its specific strategic and operational objectives while working on initiatives to advance the key priorities for the consolidated WBD. Global Linear Networks will continue to shine in its efforts to maximize profitability and free cash flow, while Streaming & Studios will be at the forefront of driving growth by crafting the world's most captivating stories.In an ever-evolving media landscape, this new structure also increases the optionality to pursue further value creation opportunities for both divisions. It aligns the organization better and enhances flexibility for potential future strategic endeavors. As WBD President and CEO, David Zaslav, stated, "Since the combination that gave birth to Warner Bros Discovery, we have undergone a remarkable transformation in our business and improved our financial standing. We remain committed to ensuring our Global Linear Networks business is well-positioned to drive free cash flow, while our Streaming & Studios business focuses on growth through storytelling. Our new corporate structure paves the way for us to build on our existing momentum and create opportunities as we explore all means to deliver substantial shareholder value."WBD is all set to commence the foundational steps immediately and aims to complete the implementation of the new corporate structure by mid-2025. Additionally, the company plans to continuously evolve its Board to effectively execute its strategy and drive future shareholder value creation.