(CNN) 鈥 Warner Bros. Discovery, CNN鈥檚 corporate parent, announced Thursday it is establishing a new corporate structure that splits its cable networks off from its growing streaming business.
The restructuring is not a spinoff of cable assets, as , but it may ultimately have the same effect.
Warner Bros. Discovery will have two separate operating divisions: 鈥淕lobal Linear Networks鈥 for CNN, TBS, TNT and other cable networks, and 鈥淪treaming & Studios鈥 for Max and the company鈥檚 film and entertainment studios.
The company said the changes will take effect by mid-2025. Shares of Warner Bros. Discovery () rose 11% after the restructuring was announced.
The new structure will give Warner Bros. Discovery more 鈥渇lexibility with potential future strategic opportunities across an evolving media landscape,鈥 CEO David Zaslav said in a press release.
Wall Street analysts have been anticipating merger and acquisition activity across the cable television industry contracts in the streaming era, particularly as President-elect Donald Trump takes office with a deregulation agenda.
This is a developing story and will be updated.
The-CNN-Wire
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