Warner Bros. Discovery on Monday unveiled the names of the proposed separate entities, post-breakup: Warner Bros. and Discovery Global.
When the corporate spin-off is complete some time next year, the venerable Burbank film and television studio properties, HBO, HBO Max streaming service and gaming properties will be part of a slimmed-down iteration called Warner Bros.
The cable networks, including TNT, CNN, HGTV and Animal Planet, and sports app Bleacher Report, will make up Discovery Global.
“We will proudly continue the more than century-long legacy of Warner Bros. through our commitment to bringing culture-defining stories, characters and entertainment to audiences around the world,” Warner Bros. Discovery Chief Executive David Zaslav said in a statement.
Zaslav, the longtime Discovery executive, is jumping to the Warner Bros. side, while his lieutenant, Chief Financial Officer Gunnar Wiedenfels, will lead Discovery Global.
The proposed corporate split is a recognition that the merger that created Warner Bros. Discovery three years ago was a misfire that eroded the value of some of the industry’s most premium brands. Zaslav championed the merger as a way to roll up several companies into one.
At the time, WarnerMedia — with its studios, HBO and Turner networks — was owned by AT&T, which was desperate to exit Hollywood after losing billions of dollars on acquisitions.
But Wall Street quickly soured on the consolidation that married nearly two dozen basic cable channels, including HGTV and Food Network, with the prestige properties of HBO and the Warner Bros. studios in Burbank.
AT&T’s sale to Discovery left Zaslav’s company struggling to tame more than $40 billion in debt. Investors also have a dim view of cable channels as the shift to streaming prompted a huge migration of viewers.
Senior executives joining Zaslav at Warner Bros. include: HBO Chairman Casey Bloys; Warner Bros. TV Group Chairman Channing Dungey; the film co-chairs Pam Abdy and Mike De Luca; DC Studios leaders James Gunn and Peter Safran, Streaming and Gaming Chief Executive JB Perrette; Chief Operating Officer Bruce Campbell and Chief Communications Officer Robert Gibbs.
Discovery Global will include CNN Chairman Mark Thompson; TNT Sports Chairman Luis Silberwasser; international operations head Gerhard Zeiler; U.S. Ad Sales President Ryan Gould; and Chief Development Officer Anil Jhingan.
“As we prepare for the launch of Discovery Global, our enthusiasm for the opportunities ahead only grows thanks to our leading portfolio of beloved brands and programming, our worldwide footprint for adults, kids, and families, and now the experienced and talented leadership team,” Wiedenfels said.
Warner Bros. has started a search for a CFO as well as a chief people officer. Wiedenfels plans to hire a top communications and public affairs officer.
