Warner Bros Discovery unveiled plans to split its television networks and streaming and studios businesses into two units, in a move that heightens the odds of a break-up of the owner of HBO and CNN.
The group’s restructuring plans, announced on Thursday, sent shares rallying as much as 16 per cent to the highest level since late 2023, according to FactSet data. They are still down some 50 per cent since the group was formed in 2022 by the merger of Warner Media and Discovery.
Warner Bros said it was creating a “new corporate structure”, in which the television business “will focus on maximising profitability and free cash flow”, while the streaming and studios division “will focus on driving growth and strong returns on increasing invested capital”.