HBO and CNN owner to split streaming and cable businesses

illuminem summarises for you the essential news of the day. Read the full piece on the BBC News or enjoy below:

🗞️ Driving the news: Warner Bros Discovery, owner of HBO Max and CNN, will split into two separate companies by mid-2026, dividing its streaming and studio assets from its cable television networks
• The restructuring aims to sharpen strategic focus as streaming audiences grow while traditional cable viewership declines

🔭 The context: The media giant was formed in 2022 through the merger of WarnerMedia and Discovery Inc., combining legacy cable brands with newer streaming platforms
• While shows like Succession and The Last of Us have boosted HBO Max, CNN and other cable channels have faced declining ratings and layoffs, prompting the need for structural change
• A similar move is underway at Comcast (see sustainability performance), separating NBCUniversal’s cable and streaming operations

🌍 Why it matters for the planet: While not a climate-focused development, this strategic shift reflects broader trends in digital transformation and media consumption that have implications for sustainability
• Streaming platforms, though more efficient than traditional broadcast in some respects, carry growing environmental impacts due to data center energy use
• As demand surges, media companies will face increased pressure to decarbonize their digital infrastructure

⏭️ What's next: The new Streaming & Studios division, led by CEO David Zaslav, will house HBO Max and Warner Bros’ film units, while the Global Networks company — overseeing CNN, Discovery, and TNT Sports — will be led by CFO Gunnar Wiedenfels
• The split aims to enhance investor clarity and operational agility, though the stock fell 3% on announcement
• Analysts anticipate further restructurings across the sector as content firms adapt to rapid technological shifts and investor expectations

💬 One quote: "We are empowering these iconic brands with the sharper focus and strategic flexibility they need to compete most effectively in today's evolving media landscape." — David Zaslav, CEO, Warner Bros Discovery

📈 One stat: Warner Bros Discovery’s streaming platforms ended Q1 2025 with over 122 million subscribers, compared to CNN’s average primetime viewership of 558,000 — a 6% year-over-year drop.

See on illuminem's Data Hub™ the sustainability performance of Warner Bros Discovery and its peers Comcast, Paramount Global, and Netflix

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