Analyst: Any Media M&A to Face Regulatory Challenges
Warner Bros. Discovery management says its separate global networks and streaming and studios businesses could take part in merger and acquisition deals as soon as the WBD restructuring is complete, Deutsche Bank's Bryan Kraft wrote investors Monday. However, he said,…
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consolidation in the media and entertainment industry will likely be a challenge from a regulatory perspective during the current administration. WBD's restructuring into two independent media companies is to be completed in mid-2026 (see 2506090024). International Center for Law & Economics senior scholar Eric Fruits wrote that the WBD breakup "might be the best bad option" for the company, letting its streaming and cable networks arms pursue strategies that would be impossible within the corporate structure. The networks company could consolidate with other cable assets, and the streaming company would have the ability to partner, merge or be acquired without debt complications, he said. The networks company's job "is not necessarily to grow; that ship has sailed," given the acceleration of cord-cutting, he said. Instead, its job is to maximize cash generation while that business shrinks, which requires different management skills and capital allocation than growth businesses, he noted.