Warner Bros Discovery to Split Streaming and Studios from Cable Networks in Major Corporate Restructuring

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Warner Bros Discovery (WBD) announced plans to divide into two separate publicly traded companies, separating its streaming and studio businesses from its declining cable television networks. This move aims to allow the streaming and studios unit—housing assets like Warner Bros, DC Studios, and HBO Max—to focus on growth without being weighed down by the struggling cable networks division that includes CNN, TNT Sports, and Bleacher Report.

The separation will be executed as a tax-free transaction expected to complete by mid-2026. CEO David Zaslav will lead the new streaming and studios company, while CFO Gunnar Wiedenfels will head the networks business, which will retain up to a 20% stake in the streaming entity. The majority of WBD’s substantial $38 billion debt will remain with the cable networks company. To facilitate this, WBD secured a $17.5 billion bridge loan from J.P. Morgan.

The restructuring comes amid ongoing challenges for WBD, including heavy debt, subscriber losses in cable TV, and intense competition in streaming. Shares initially surged after the announcement but later retreated, reflecting investor concerns. Shareholder dissatisfaction was highlighted at the company’s recent annual meeting, where about 59% voted against executive pay packages.

Industry experts warn the split may not resolve WBD’s core issues and could complicate operations during the transition. Nonetheless, the move aligns with broader media trends, as companies like Comcast and Lionsgate also separate cable networks from content studios to sharpen focus and unlock shareholder value.

WBD’s streaming service, recently rebranded as HBO Max, currently has about 122 million subscribers and aims to exceed 150 million by 2026. Despite this, it remains behind competitors like Netflix and Disney+ in scale. Analysts predict continued consolidation in the cable networks space, with Comcast’s forthcoming spinoff of NBCUniversal cable networks and speculation that WBD’s networks could become acquisition targets.

The split underscores the shifting landscape of media consumption, where streaming growth contrasts with declining traditional TV viewership, forcing legacy companies to reorganize to stay competitive.

U.S. State Department Employs AI Chatbot ‘StateChat’ to Aid Selection of Promotion Panels

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The U.S. State Department will use an AI chatbot named StateChat to assist in selecting members for its Foreign Service Selection Boards, which conduct annual reviews for promotions and personnel moves, according to a recently issued internal cable reviewed by Reuters.

StateChat, developed in-house with technology from Palantir and Microsoft, will help identify foreign service officers eligible to serve on these critical evaluation panels. However, the department clarified that the actual promotion evaluations will not be performed by AI.

The boards operate under the 1980 Foreign Service Act and are responsible for recommending career advancement of diplomats and staff, with legal mandates to ensure significant representation of women and minority groups.

StateChat has been in use since last year for tasks such as transcribing notes, drafting emails, and analyzing diplomatic communications. The cable disclosed for the first time that it would now also be applied to “perform unbiased selection” for panel membership, based on employees’ skill codes and grades. Candidates will then be screened for disciplinary or security concerns before finalizing the boards. The cable did not specifically mention measures to ensure gender or minority group representation.

The American Foreign Service Association, representing State Department employees, said it is seeking clarification on how AI-assisted selection will align with diversity and legal requirements.

The move comes amid broader expanded AI adoption in government under President Donald Trump’s administration, despite ongoing political criticism of diversity, equity, and inclusion (DEI) efforts within federal agencies.

Palantir and Microsoft have not commented on the deployment.

WPP Media Lowers 2025 Global Ad Revenue Growth Forecast to 6% Amid US Trade Uncertainty

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WPP Media on Monday revised down its forecast for global advertising revenue growth in 2025 to 6%, from an earlier estimate of 7.7%, citing increased uncertainty over U.S. trade policies. Advertisers appear to be delaying new marketing commitments amid shifting trade dynamics, the report by WPP’s media investment division revealed.

Digital advertising remains a key revenue driver for major tech firms including Google (Alphabet), Meta Platforms, Pinterest, Reddit, and Snap. The report highlighted how economic uncertainty is accelerating the adoption of AI tools for ad creation and targeting. Meta, for instance, plans to enable brands to fully create and target ads using AI tools by the end of 2026.

Research from Emarketer also suggests companies reliant on traditional keyword-based search ads may face revenue declines due to the rise of AI-driven search advertising.

WPP Media projects global advertising revenue will reach $1.08 trillion in 2025, with growth moderating to 6.1% in 2026. Digital advertising is expected to represent 73.2% of total ad revenue this year. Notably, user-generated content is forecasted to generate more ad revenue than professionally produced content in 2025.

The report anticipates print advertising revenue will decline by 3.1% to $45.5 billion in 2025, while search ad revenue is forecast to grow by 7.3%.

WPP Media also noted shifting brand strategies, including prioritizing flexible ad contracts, reallocating budgets toward direct-to-consumer media placements, and emphasizing secure data handling amidst economic uncertainty.

The U.S. remains the largest advertising market, with an expected growth of 5.6% to $404.7 billion, followed by China and the UK.