COMMUNICATIONS: John Malone Suggests Linear TV Tracking Stock For WBD
Baa3/BBB-[N]/BBB-
Not a spread mover as just the voice of one person but worth noting given recent speculation (and subsequent pushback) around a group split.
• Headline overnight that John Malone in an interview with MoffettNathanson equity researchers suggests creating a tracking stock for Warner Bros. Discovery’s traditional TV networks, separating them from studio and streaming units.
• A similar setup has been used at Liberty where Malone is the chairman and largest shareholder. At WBD he is a board member and a reportedly ~8% shareholder.
• This structure would split the company into a "growth side" (studio and streaming) and a "cash cow side" (traditional TV networks). Debt allocation would favour the TV side, potentially attracting private equity investment.