Warner Bros. Discovery Plans Split, Future of TNT Sports Uncertain

Warner Bros. Discovery has announced a significant restructuring plan that could reshape the future of TNT Sports. The company is exploring a split into two independent entities, one focused on streaming and studios, and the other on global networks, including TNT Sports. This move comes after the termination of the company's long-standing partnership with the National Basketball Association earlier this year, signaling a potential exit from the U.S. sports business.

The proposed split will divide Warner Bros. Discovery into two main entities. The first, tentatively named "Streaming and Studios," will encompass Warner Bros. Television, Warner Bros. Pictures Group, DC Studios, HBO, and HBO Max. The second entity, currently called "Global Networks," will integrate the remaining assets, including traditional cable networks, TNT Sports, digital products, and European free-to-air television channels.

David Zaslav, the CEO of Warner Bros. Discovery, will lead the "Streaming and Studios" division. Gunnar Wiedenfels, the current CFO of Warner Bros. Discovery, will head the "Global Networks" division. This restructuring raises critical questions about the future of TNT Sports' broadcasting rights, which are currently supported by Warner Bros. Discovery's streaming business.

During a conference call on Monday, Zaslav stated that the future of TNT Sports content, whether it will be licensed to "Streaming and Studios" or other parties, will be decided by Wiedenfels and his team. Currently, all TNT Sports content is broadcast on HBO Max, the flagship streaming platform of Warner Bros. Discovery. Zaslav hinted that TNT Sports might eventually separate from this streaming service, noting that U.S. sports content is not a primary driver of HBO Max user growth.

"In the U.S., sports content is less important," Zaslav said during the call with investors. "While some people watch, it is not our core driver. Therefore, the content will continue to be broadcast on HBO Max, but the Global Networks business will gradually evaluate its best placement."

HBO Max will continue to fulfill existing sports broadcasting agreements, but Wiedenfels will need to determine how to monetize TNT's future streaming and digital sports rights. He may reach licensing agreements with other media companies to distribute live sports broadcasts from Turner networks, including events like the NCAA March Madness, French Open tennis, NASCAR racing, Major League Baseball, and National Hockey League games.

"U.S. sports rights will belong to Global Networks, and its management team will decide how to gradually maximize the value of streaming and digital rights," Wiedenfels said. "Internationally, sports content will continue to be available on both linear television and streaming platforms as it is now."

Wiedenfels may also choose to merge TNT Sports with another entity, such as Versant, which is set to be spun off by Comcast. Versant CEO Mark Lazarus mentioned last month that he is interested in acquiring sports rights to enhance the distribution influence of pay-TV operators. Acquiring TNT Sports could be a significant step in that direction.

If Wiedenfels opts for integration, he will need to weigh the tax implications of selling assets post-split. Although Warner Bros. Discovery claims the split is tax-free, Wiedenfels emphasized during the meeting that transactions could commence immediately after the split, with completion expected by mid-2026.

"Regarding taxes, I have previously explained that once the transaction is complete, both companies will be fully independent," Wiedenfels said. "There is no minimum time limit."