Warner Bros. Discovery (WBD), the parent company of TNT Sports, is reportedly contemplating a division of its linear television assets from its digital and studio operations. According to Alex Sherman of CNBC, WBD has engaged bankers to explore options that may include separating its legacy assets from its future-focused streaming and studio businesses. The Financial Times first reported this possibility last year; however, WBD CEO David Zaslav quickly dismissed it as a bad idea. Currently, the company operates within these factions following a restructuring announced late last year, which has simplified the potential for a spinoff.
Should WBD pursue this path, it would be the second major media company to consider such a split, following Comcast’s announcement of its intention to spin off most of its cable networks last year. For sports enthusiasts, a WBD split would likely result in the TNT Sports networks—TNT, TBS, and truTV—no longer operating under the WBD umbrella. In this scenario, the newly formed entity could become an attractive acquisition target, potentially by Comcast’s upcoming SpinCo.
A combination of Comcast’s cable assets and WBD’s own could be quite appealing, including notable sports programming like the TNT Sports networks, Golf Channel, and USA Network. This would represent a powerful portfolio of sports rights encompassing MLB and NHL postseason games, English Premier League, March Madness, NASCAR, College Football Playoff, and more.
One reason Zaslav might lean towards splitting the company, according to Michael Wolff in New York Magazine, is to avoid the regulatory scrutiny that often accompanies traditional mergers. Many media executives, including Zaslav, have suggested that the Trump administration would be more favorable towards consolidation compared to the previous administration; however, this has not materialized as expected.
Currently, Paramount is still waiting for regulatory approval for its purchase from Skydance. Sherman notes that recent market volatility has made consolidation “virtually impossible” at this time, prompting media executives like Zaslav to seek alternative strategies, including the divestment of declining assets. According to Sherman, “No decisions have been made on this front yet,” but “WBD hasn’t ruled it out if the board thinks it’s the easiest way to facilitate asset reallocation because other deals aren’t on the table.” Regardless of whether this specific split occurs, it is highly likely that significant consolidation among legacy media assets will happen in the next few years, raising questions about which assets will change hands, who will own them, and how it will impact consumers.
