But it’s an entirely different story for cable. WBD’s flagship news channel, CNN, averaged 558,000 viewers during primetime hours in the first three months of this year, 6% lower than the same period in 2024. And now, with the division of both companies, its streaming services will be where the growth opportunities are.
Despite possible regulatory hurdles, there could be strong competition in the streaming battleground with the likes of companies like Apple, Amazon, and Netflix. Sony seems to be sniffing around HBO and WBD’s gaming assets to continue making moves to reinvent the brand as an entertainment giant. And the good news for them is that WBD is open to deals.
The breakup will inevitably mean that certain parts of the business are viable to a bidding war from these larger players to create the biggest and best platform that outranks the others. Depending on which aspects of its streaming capabilities WBD is willing to sell off, we could end up with an entirely new streaming landscape.
With cable TV continuing on a downward trajectory, it would be a smart move for WBD to use the split as an opportunity to consolidate its legacy networks into a handful of flagship channels, which could also see certain aspects sold off. Despite the current landscape of the cable industry, it still holds potential, and with this, it has potential buyers looking to reignite the sector.
Comcast’s spin-off brand Versant will house the majority of its NBCUniversal cable network portfolio, including USA, CNBC, and MSNBC. The new brand emphasizes versatility—it has the perfect setup to complete M&A deals and significantly build its portfolio. And with the WBD split, this is the perfect opportunity for Versant to purchase a handful or even the entirety of WBD’s networks, which could see Comcast truly dominate across cable TV.
There’s no doubt that this will be a costly divorce for WBD. By trying to close the gap between its streaming and cable offerings, its confusing position has meant years of losing customers and a decline in revenue as a result. But the split should mark a fresh start for the business—an opportunity to unlock shareholder value, as the value of the individual parts is more than the value together. And with potential interest in individual assets from third parties, as an opportunity for these buyers to build on their own portfolios, WBD can win back some of its lost revenue with the sale of parts of the business that are no longer positively serving the business.
That said, there is concern around the network’s ability to carry the debt, given the declining nature of the cable business. WBD will have to be very selective in the areas of the business it sells off, if any. We know streaming will be key to its turnaround, which leaves a question mark over its cable networks. Either use this as an opportunity to innovate and signal something new, or the likes of Comcast could be making some acquisitions very soon.
