(CNN) 鈥� Warner Bros. Discovery, CNN鈥檚 corporate parent, announced Thursday it is establishing a new corporate structure that splits off its cable networks from its growing streaming business.
The restructuring is not a spinoff of cable assets in the way that , but it may ultimately have the same effect.
Warner Bros. Discovery will have two separate operating divisions: 鈥淕lobal Linear Networks鈥� for CNN, TBS, TNT and other cable networks, and 鈥淪treaming & Studios鈥� for Max and the company鈥檚 film and entertainment studios.
The company said the changes will take effect by mid-2025. Shares of Warner Bros. Discovery () ended the day more than 15% higher.
The new structure will give Warner Bros. Discovery more 鈥渇lexibility with potential future strategic opportunities across an evolving media landscape,鈥� CEO David Zaslav said in a press release.
Wall Street analysts have been anticipating merger and acquisition activity across the cable television industry contracts in the streaming era, particularly as President-elect Donald Trump takes office with a deregulation agenda.
In a note on Thursday, MoffettNathanson senior research analyst Robert Fishman likened the deal environment to a game of chess 鈥� 鈥渁 struggle for victory that often runs through an intermediate struggle for control of the board鈥檚 center.鈥�
鈥淭he question is not whether more pieces will be moved around or knocked off the board or if further consolidation will happen 鈥� it is a matter of who is the buyer and who is the seller,鈥� Fishman wrote. 鈥淭he center of the board still remains very much open for the taking.鈥�
Investors on Thursday seemed to cheer Zaslav鈥檚 willingness to strike deals 鈥� or 鈥渟trategic opportunities,鈥� as he put it.
One asset sale was announced Thursday afternoon: Hearst Magazines said it was buying MotorTrend Group from Warner Bros. Discovery. The terms were not disclosed.
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