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Warner Bros. Discovery announced this morning that it’s embarking on a corporate restructure that will result in two divisions—one focused on streaming and content, and the other on its cable TV business—that should be fully operational by mid-2025.

The Streaming & Studios unit is where platforms like Max and Discovery+ will sit, alongside movie studios WB Pictures and New Line Cinema. This division’s streamlined goal is to drive “strong returns on increasing invested capital,” according to a press release. 

Meanwhile, the Global Linear Networks unit will focus on maximizing profitability and cash flow, encompassing networks such as CNN, HGTV, TNT and the Food Network. Multiple media sources have reported that HBO will live under the Streaming & Studios umbrella, despite its linear presence.

This shake-up should help the company separate its growing streaming business from its declining linear business. WBD’s TV networks segment posted a significant US$9.1-billion writedown in Q2 2024. But the company’s streaming segment has seen sustained growth, with last month’s Q3 report highlighting a 9% year-over-year uptick in DTC revenue and Max’s biggest quarterly subscriber gain to date.

This restructure could also make it easier to negotiate a potential sale or spinoff of the cable assets down the line. “Our new corporate structure better aligns our organization and enhances our flexibility with potential future strategic opportunities across an evolving media landscape,” explains WBD president and CEO David Zaslav (pictured inset). “[This helps] us build on our momentum and create opportunities as we evaluate all avenues to deliver significant shareholder value.”

So far, the market appears to be responding favorably to today’s news; WBD shares were up by almost 15% in early trading.