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DC Comics Has New Owners At Warners, With A "Ten Year Plan For DC"

DC has new owners, Warner Bros. Streaming & Studios? It's looking that way. And they have a ten year plan...

Warner Bros. Discovery today announced plans to separate the company, in a tax-free transaction, into two publicly traded companies, enabling each to maximise its potential. The Streaming & Studios company will consist of Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, and HBO Max, as well as their film and television libraries. And Global Networks will include premier entertainment, sports and news television brands around the world, including CNN, TNT Sports in the U.S., and Discovery, top free-to-air channels across Europe, and digital products such as the profitable Discovery+ streaming service and Bleacher Report.

David Zaslav, President and CEO of Warner Bros. Discovery, will serve as President and CEO of Streaming & Studios. Gunnar Wiedenfels, CFO of Warner Bros. Discovery, will serve as President and CEO of Global Networks. Both will continue in their present roles at WBD until the separation.

But what about DC Comics? There seems to be some confusion online. But DC Studios being with the Streaming & Studios side seems to be the consensus amongst Warner Bros people who I contacted this morning, which would keep David Zaslav in charge of DC Comics. UPDATE: We have now confirmed this, DC Comics is indeed part of Zaslav's Steaming & Studios. In the investment call, David Zazlov said, "We're very excited about Superman, we're almost wrapped with Supergirl, a great plan around DC, a ten-year plan", and while this seems to be movie-focused, this appeared to be in relation to the whole DC brand. As well as later adding "We'll be going more and more to the best content that we have, you know, that people see and love all around the world, whether that's Lord of the Rings or DC. And Mike [De Luca] and Pam [Lifford] are really looking at mining the big brands. We're still going to do a lot of original, but mining those big brands that give us a real advantage in the marketplace." However, as the announcement is rather new, there's also a lot of contradiction and uncertainty. One thing you can rely upon is quotes from the press release.

• "The cultural significance of this great company and the impactful stories it has brought to life for more than a century have touched countless people all over the world. It's a treasured legacy we will proudly continue in this next chapter of our celebrated history," said Zaslav. "By operating as two distinct and optimised companies in the future, we are empowering these iconic brands with the sharper focus and strategic flexibility they need to compete most effectively in today's evolving media landscape."
• "This separation will invigorate each company by enabling them to leverage their strengths and specific financial profiles. This will also allow each company to pursue important investment opportunities and drive shareholder value," said Wiedenfels. "At Global Networks, we will focus on further identifying innovative ways to work with distribution partners to create value for both linear and streaming viewers globally while maximising our network assets and driving free cash flow."
• "We committed to shareholders to identify the best strategy to realise the full value of our exciting portfolio of assets, and the Board believes this transaction is a great outcome for WBD shareholders," added Samuel A. Di Piazza, Jr., Chair of the Warner Bros. Discovery Board of Directors. "This announcement reflects the Board's ongoing efforts to evaluate and pursue opportunities that enhance shareholder value."

Here's how they describe the two new halves;

• Streaming & Studios With best-in-class creative capabilities and an unmatched library of beloved IP, Streaming & Studios will be one of the world's greatest storytelling companies. The company will be comprised of Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO and HBO Max (including its international sports offering), Warner Bros. Games, Tours, Retail and Experiences, as well as studio production facilities in Burbank and Leavesden. Streaming & Studios will have dynamic and sustainable revenue, profit and free cash flow growth. The company will focus on continuing to scale HBO Max, which is now in 77 markets with important new market launches planned for 2026, and build on its global momentum, investing in HBO's world-class programming which differentiates and drives the platform, and prioritizing the operating principles that have put the Studios on a path back to their target of at least $3 billion in annual adjusted EBITDA.
• Global Networks Global Networks will encompass a powerful and preeminent global portfolio of entertainment, sports and news television networks and brands as well as their digital products. Today, these assets reach 1.1 billion unique viewers in 68 languages across 200 countries and territories, while operating with industry-leading margins and robust free cash flow conversion. As a worldwide leader in live television, Global Networks will have the expertise, reach and ongoing financial profile to pursue opportunities such as investing in international growth opportunities, elevating its live content offerings in sports and news, and growing digital extensions of its strong network brands, such as Discovery+, B/R, and CNN's new streaming offering.

Then there's a lot about tax, financing, investment, "a committed bridge facility of $17.5 billion provided by J.P. Morgan" and that "Global Networks will hold up to a 20% retained stake in Streaming & Studios that it will plan to monetize in a tax-efficient manner to enhance the de-leveraging of its balance sheet." De-levering your balance sheet just seems like some kind of sexual euphemism used by red-flagged accountants, but we'll let that slide.

The separation is expected to be completed by mid-2026, subject to closing and other conditions, including final approval by the Warner Bros. Discovery Board, receipt of tax opinions and/or a private letter ruling from the Internal Revenue Service "with respect to the tax-free nature of the transaction for U.S. federal income tax purposes, and market conditions." Well, you wouldn't want to pay taxes on all these billions, would you? And J.P. Morgan and Evercore serving as financial advisors to Warner Bros. Discovery and Kirkland & Ellis LLP serving as legal counsel will make all that happen, I am sure.

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