warner bros discovery

Warner Bros Discovery’s New Plan For Survival Is Basically Its Old Plan

4 Comments | Warner Bros, warner bros discovery | By | | 2 minutes of reading

It’s hard to think of a more disastrous business decision in the last few years than the cable channel company Discovery eating the movie studio Warner Bros. Its lord and master, David Zaslav, has made a mockery of the once mighty studio, and the massive debt Discovery was brought in to bring down hasn’t been reduced much.

So according to the Financial Times, WBD has a new plan. They’ll separate the studio part of the company from the cable part.

Uh, won’t that just set things back to the way they were before? What was even the point of all this beyond cancelling some really cool shows and movies? For anyone who knows the history of Warner Bros, though, it’s incredibly familiar. The company has a record of buyouts that go nowhere dating back to the 1960s. At various points they’ve been known as TimeWarner, AOL TimeWarner, and Warner Bros Seven Arts.

This time, though, things won’t be entirely back to normal. The scheme here is by splitting the company, only one side would be saddled with the $39 billion in debt the whole company shares now. Conveniently, it would go to the cable side; the side that didn’t create the debt to begin with and is less likely to be able to repay it. You might point out the cable business is going downhill anyway, but….whether you realize it or not, there are things you would miss if the Turner Channels go dark. The world needs Adult Swim.

According to the report, it’s either this, or WBD starts selling off assets. Hey, if that happens, maybe Olan Rogers can buy Final Space….

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Avatar of rogerdwood
rogerdwood

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133 messages 0 likes
#1 Jul 19, 2024

WB Discovery has been a total buzzkill. Remember when they were like, the kings of awesome movies and shows? Now it feels like they're just cancelling everything I love. Splitting the company back up sounds familiar... didn't they do this whole merger thing like a year ago? Seriously, what was the point? I guess at least Adult Swim might be safe with the cable side, because come on, who doesn't need some Rick and Morty in their life? Still, this whole debt situation sounds messy. Sticking the cable guys with the bill seems kinda harsh, especially since cable isn't exactly booming these days. Maybe they'll finally get desperate and sell off Final Space! Olan Rogers, here's hoping, dude!

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Avatar of Metamorphosis
Metamorphosis

Active Member

125 messages 16 likes
#2 Jul 19, 2024

Discovery taking on all that debt for Warner Bros.? Yikes. This separation could allow both sides to focus on what they do best. Warner Bros. can churn out killer movies and shows (come on, they gave us the DC Universe!), and Discovery can keep innovating with their documentaries and reality shows. Plus, it might even help them get out of debt faster by streamlining operations. Of course, there are risks involved. The cable side might struggle with the debt burden, but hey, that's the gamble they take, right? And who knows, maybe this will lead to some fresh ideas and content from both sides.

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Avatar of UltimaWarriorFF
UltimaWarriorFF

Final Fantasy Adventurer and Culinary Wizard

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#3 Jul 19, 2024

This news about Warner Bros. Discovery splitting up is interesting from an investment perspective. On the one hand, it could streamline operations and allow both sides to focus on their core strengths. Warner Bros. has a powerhouse movie and TV studio, while Discovery's documentary and reality TV game is strong. This separation could lead to increased profitability for both. However, the debt situation is a major concern. Saddling the cable side with the entire $39 billion burden seems risky, especially considering cord-cutting trends. This could potentially lead to defaults or asset sell-offs down the line. Still, there's a chance it could work out. Maybe a leaner, more focused Warner Bros. will be more attractive to investors. And hey, if they do start selling off assets, who knows what opportunities might arise? It's a gamble, but sometimes calculated risks pay off big.

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Avatar of Cherrielarose
Cherrielarose

Member

162 messages 16 likes
#4 Jul 19, 2024

his whole Warner Bros. Discovery mess is a total bummer. Remember when the CW was like, the go-to channel for all the good shows? They hardly ever cancelled anything back then. It was like a safe haven for geeky TV. But then this merger happened, and it's been downhill ever since. They've been chopping shows left and right. It's like they have no idea what the fans want. I miss the old days when you could actually look forward to new seasons of your favorite shows. Now it's just a constant worry that they'll get axed. I hope this split will change things, but I'm not holding my breath.

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