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President and CEO of Warner Bros. Discovery, David Zaslav arrives for the world premiere of "The Flash" at Ovation Hollywood in Hollywood, California, on June 12, 2023.
Michael Tran | Afp | Getty Images
Warner Bros. Discovery on Thursday announced a restructuring plan to segment its business into linear and streaming units in a move that could simplify future consolidation.
Shares of WBD were up roughly 15% in early trading Thursday.
The company's new global linear networks division will house its networks of news, sports, scripted and unscripted programming like CNN, TBS, TNT, HGTV and the Food Network. A streaming and studios unit will house WBD's film studios and streaming platform Max.
Longtime TV powerhouse HBO will be slotted under the streaming unit, according to a person familiar with the matter.
The update comes weeks after Comcast announced it would spin out its cable networks, including CNBC, MSBNC, E!, Syfy, Golf Channel, USA and Oxygen.
"We continue to prioritize ensuring our Global Linear Networks business is well positioned to continue to drive free cash flow, while our Streaming & Studios business focuses on driving growth by telling the world's most compelling stories," WBD CEO David Zaslav said in a statement.
Warner Bros. Discovery expects to complete the restructuring by the middle of next year.
Disclosure: Comcast is the parent company of CNBC.
— CNBC's Alex Sherman contributed to this report.
