Following the exit of two of its highest-ranking executives, WarnerMedia has announced that it will be overhauling its organizational structure. The company, which is currently one of the world's biggest producers of TV and film content, revealed that the move was intended to bolster its product line to compete with newly formed streaming services such as Netflix and Amazon.
WarnerMedia was originally formed when AT&T finally was able to legally acquire Time Warner last year. AT&T had to face a string of court cases, including an antitrust lawsuit, filed by the United States Department of Justice. Despite the government agency's attempts to block the merger, AT&T was finally able to get the court's approval to move ahead with the acquisition. AT&T originally made an offer of US$108.7 billion to acquire Time Warner in 2016. The company also offered to fully assume Time Warner's debt in its original acquisition offer.
The AT&T-owned company recently saw the departure of Richard Plepler, the chief executive of HBO, and David Levy, the president of Turner. With the exit of both executives, WarnerMedia has confirmed that it is now forming a new branch called WarnerMedia Entertainment. The new department will be mainly focusing on providing direct-to-consumer content, which basically means that it will provide on-demand streaming content on a yet to be revealed new platform. The department also oversees operations for former properties under the Turner Broadcasting System, including Tru TV, TNT, and TBS.
While the company has not yet revealed any details about its new streaming service, reports have speculated that WarnerMedia may already be laying the groundwork to launch a number of new streaming channels that will feature content from its massive Warner and HBO libraries. Heading the new initiative will be the former chairman of NBC Entertainment, Robert Greenblatt.
To handle its various sport broadcast units, the company has confirmed that it has already assigned CNN president Jeff Zucker to oversee Turner Sports, AT&T's Regional Sports Network, and Bleacher Sports. The current chairman and chief executive of Warner Bros. Entertainment, Kevin Tsujihara, has also been given additional responsibility to oversee the company's new global kids and teens broadcast business. Tsujihara will now be heading Turner's various broadcast properties, which includes Adult Swim, Boomerang, and Cartoon Network.
To handle the company's sales departments, WarnerMedia has assigned former Turner International president, Gerhard Zeiler, as its new chief revenue officer. Zeiler will be overseeing the company's advertising and affiliate sales moving forward. According to sources close to the restructuring, WarnerMedia may be planning to remove hundreds of redundant positions. This would result in significant layoffs in an effort to further improve efficiency and cut cost. As of last year, WarnerMedia had around 30,400 employees working full time.
