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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.

South Korea’s Hanwha Sells Entire 5.4% Stake in Eutelsat Amid Strategic Refocus

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South Korean aerospace and defense company Hanwha Systems announced on Thursday that it is selling its entire 5.4% stake in the Franco-British satellite operator Eutelsat for €77.6 million ($88.5 million). This move comes as Eutelsat seeks new investors to support its second-generation low Earth orbit (LEO) satellite program and commitments to the European Union’s IRIS² project.

Eutelsat has faced significant financial challenges, accumulating hundreds of millions of euros in losses, largely due to its declining video business and delayed returns from its 2023 acquisition of OneWeb. The acquisition has struggled amid stiff competition and slower-than-expected technology deployment.

Hanwha’s sale price of €3.00 per share represented a 13.9% discount to Eutelsat’s previous closing price of €3.48 and reflects a steep loss of approximately 70.5% compared to Hanwha’s initial $300 million investment in OneWeb in 2021. Eutelsat’s shares reacted with a 14.8% drop on the Paris market following the announcement.

Hanwha emphasized that the sale aligns with a strategic pivot to focus more on its core businesses related to defense satellites and military communications, rather than civilian satellite operations. A Hanwha representative also resigned from Eutelsat’s board in April, signaling a reduced involvement.

Eutelsat is currently undergoing leadership changes and financial restructuring, with Jean-François Fallacher recently appointed as CEO. There are also reports that the French government is considering increasing its stake in Eutelsat, potentially doubling it with a capital injection of €1.5 billion to stabilize the company.

Meanwhile, both Starlink and Eutelsat OneWeb recently received licenses from South Korea’s Science Ministry to operate satellite internet services in the country, with service launches expected soon. Hanwha acts as a distributor for OneWeb in South Korea under a 2023 agreement targeting improved LEO communications for government and underserved areas.

Intel Weighs Sale of Networking and Edge Unit in Strategic Refocus Under New CEO

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Intel is considering divesting its networking and edge computing division — previously known as NEX — as part of a broader strategy to streamline operations and refocus on its core strengths in PC and data center chips, according to sources familiar with internal discussions.

Under new CEO Lip-Bu Tan, the tech giant is evaluating the relevance of its diverse business units to prioritize areas where it maintains market leadership. Tan emphasized at an event in Taipei that Intel commands 68% of the PC chip market and 55% of the data center chip market, and plans to “expand and build on” those domains.

Although no formal sale process has been launched yet, Intel has initiated early-stage discussions, spoken with third parties potentially interested in the NEX business, and interviewed investment banks to possibly advise on the transaction. However, no advisor has been officially retained, and options remain open.

Sources indicate that the networking and edge unit — which generated $5.8 billion in revenue in 2024 — is no longer seen as essential to Intel’s growth plans. The company now folds NEX’s financials into its broader PC and data center segments, eliminating separate reporting.

The telecom-focused segment within NEX is especially seen as misaligned with Intel’s new direction, and competitors like Broadcom dominate significant parts of the networking market, further reducing Intel’s strategic incentive to compete there.

While Intel has not committed to a full divestiture, it may explore partnerships, stake sales, or restructuring alternatives. The potential NEX sale follows other recent portfolio adjustments — notably, the $4.46 billion sale of a majority stake in its Altera unit to SilverLake in April. That move came after previously planned IPO ambitions for Altera under former CEO Pat Gelsinger.

Despite this refocusing, Intel continues to face pressure as it loses ground in the PC and data center markets, making Tan’s efforts a critical pivot point for the company’s future trajectory.