Warner Bros. Discovery's announced reorganization into two operating groups aims to better manage its cable assets and streaming services, but its past performance raises doubts about revenue growth.
Despite a 15% stock increase due to the reorganization announcement, Warner Bros. Discovery's share performance this year remains lackluster compared to the S&P 500 and rival Disney, indicating underlying struggles.
CEO David Zaslav stated the reorganization will "better align our organization and enhance our flexibility with potential future strategic opportunities," yet provides little concrete support for this optimism.
With a high churn rate of 17% for Max, Warner Bros. Discovery's streaming service struggles to compete with Netflix and Prime Video, underscoring the challenges facing its media business.
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