(Dec 12): Warner Bros Discovery on Thursday decided to separate its declining cable TV business from the streaming and studio operations, laying the groundwork for a potential sale or spinoff of its TV business as cord-cutting picks up pace.

Its shares rose about 7% in early trading as the company said the new corporate structure will provide more options for further value creation at both the divisions. It expects to complete the split by mid-2025.

Media companies are considering options for their cable TV businesses as a large-scale shift by consumers toward streaming has slammed growth in traditional TV, which has long been the industry's cash cow.

Comcast last month unveiled plans to split most of its NBCUniversal cable networks into a new public company, while Comedy Central and Nickelodeon owner Paramount Global had earlier this year agreed to merge with streaming-era upstart Skydance Media.

Under the new structure for Warner Bros Discovery, broadcast networks like TNT, Animal Planet and CNN will be housed in a unit called "Global Linear Networks".

Streaming platforms Max and Discovery+ will be under a division along with film studios, including Warner Bros Pictures and New Line Cinema.

The company in August wrote down the value of its TV assets by more than US$9 billion (RM39.9 billion) due to uncertainty around fees from cable and satellite distributors and sports rights renewals.

CEO David Zaslav said last month he expects a friendlier environment for deal-making under the incoming Trump administration, opening the door to industry consolidation.

Earlier this week, the company signed a multi-year distribution deal with Comcast that paves the way for the European launch of its Max streaming service, and resolves a dispute over an upcoming Harry Potter TV series.

Uploaded by Magessan Varatharaja