Warner Bros. Discovery's Plan To Split Up Studios From Cartoon Network And HBO Could Come With Everlasting Effects

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Warner Bros. Discovery after accumulating so much debt even after the formation of Discovery and WarnerMedia is exploring a separation of assets. This would see Warner Bros. Studios operating independently away from linear brands like Cartoon Network and HBO.

With that huge debt, no company can afford it to absorb it unless some cost cutting measures were implemented in an attempt to reduce that debt. The only other option in mind at this point would be splitting up as seen prior or selling assets separately. 

Separating Cartoon Network from Warner Bros. Studios could come with various risks like if there's no funding coming from Warner Bros. Discovery how will it survive. Even if the idea were to sell, Cartoon Network could become more like The CW and TBS.

It could lose credibility and give brands like Nickelodeon and Disney Channel more of an advantage. Maybe, it's possible that the channel could survive the purge and build similar positioning to DreamWorks and Moonbug which serves as promotional. 

Cartoon Network unveiled several new projects at Annecy like Foster's Funtime For Imaginary Friends, an untitled Regular Show series and Scooby-Doo! Go Go Mystery Machine. These are likely projects they want to distribute on other platforms.

Max had join the likes of SABC+ and BBC iPlayer platforms with little to no original content as they shift focus on archived material. Those titles are likely being shipped from platform to platform.

The splitting of Warner Bros. Discovery also guarantees job losses and the possibility of cord cutting. If two people were managing TNT and TBS separately they could let go of one and also seek to merge TNT and TBS alongside its programming. 

Warner Bros. Discovery was operating independently in other countries with Warner TV and Cartoon Network continuing to add new content. There's no guarantee that the services in those markets will stay afloat especially if the lot depend on its studios for survival.