Warner Bros. Reportedly Looking to Split Away From Basic Cable in Latest Move

Warner Bros. Discovery could be seeking to split its TV networks, including CNN and TNT, from the rest of its business.

By Stephen Andrew

Warner Bros. Discovery is looking to chip away at some debt and, reportedly, might do it by splitting streaming away from basic cable. The company has been attempting to save money through moves such as employee downsizing, per IndieWire, and now it's speculated the WBD could separate its TV networks form the rest of its business.

Among the networks under the Warner Bros. Discovery media umbrella are TNT, TBS, HGTV, TCM, CNN, Food Network, and more. IndieWire's Brian Welk notes that "much of WBD's debt lies within the basic cable channels – while they still generate cash, their value is dwindling," so "a split could unlock value on the studio and streaming side."

Interestingly, sources have now indicated that Warner Bros. Discovery president and CEO David Zaslav is considering this option, among some others.

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However, not everyone is convinced that this is the right move. IndieWire obtained a client memo written by LightShed Venture's Rich Greenfield, who believes it would be "nonsensical" to break up WBD. "Given the need to aggressively invest in streaming content, tech and marketing, creating a standalone studio/streaming business with very little cashflow generation would appear irresponsible," Greenfield wrote. "You need the cashflow from Turner/Discovery to build a robust streaming business."

IndieWire reports that a spokesperson for Warner Bros. Discovery declined to comment on the reports.

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