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Warner Bros. Discovery said Thursday that it is restructuring into two operating divisions — with one focusing on its struggling legacy cable TV business and the other on streaming and studios — in a rejigger that could set it up for “strategic opportunities” down the road.

The media giant — in what insiders called a sign of optimism that regulations around mergers and acquisitions will be friendlier under the Trump administration — will merge the unit that includes streaming services Max and Discovery+ and HBO with a division that includes movie and TV studio Warner Bros.

The streaming and studios unit will sit alongside the company’s legacy cable unit, which includes networks such as CNN, TNT, TBS, Food Network and HGTV. 

The move comes as the New York-based conglomerate tries to persuade Wall Street that it is set up to compete with entertainment giants like Disney, Netflix, Apple and Amazon.

In a statement, Warner Bros. Discovery Chief Executive Officer David Zaslav said the new structure better aligns our organization and enhances our flexibility with potential future strategic opportunities across an evolving media landscape.

Currently, Warner Bros. Discovery has three segmentsnetworks, studios and direct-to-consumer streaming. The CEO said he expects the new structure to be set up by the middle of 2025.

Media companies with cable TV businesses, which are no longer growth engines, are mulling ways to best manage the divisions while still growing.

Last month, Comcast said it will spin off a trove of its cable networks, including MSNBC and CNBC, into a standalone company next year.

While the same strategy has been discussed at Warner Bros. Discovery, it would be a bigger challenge for the company to absorb the financial blow of losing cable profits, The Wall Street Journal reported.

What’s more, Comcast is a larger and more varied business with theme parks and broadband businesses, allowing it to better handle such a move.

Warner Bros. Discovery said it expects to continue to evolve the Board to execute its strategy and drive future shareholder value creation.

Warner Bros Discoverys streaming business is at the center of its growth strategy. The company currently has about 110 million subscribers globally for its streaming services. 

Meanwhile, the company’s cable TV unit has struggled as consumers continue to cut their cable plans in favor of streaming and advertisers shift more of their spending to digital platforms. Earlier this year, Warner took a $9.1 billion write-down on the value of its cable networks.

Despite those challenges, the cable network unit is still the largest revenue generator for the firm.

Through the first nine months of this year, the cable unit posted $15.4 billion in revenue, down 3% from the same period a year ago.

Since 2022 when Warner Media merged with Discovery to form the media giant, insiders have speculated that the company would eventually be an acquisition target or merge with another firm.

Zaslav explored combining with Paramount Global earlier this year, but Paramount ultimately decided to merge with Skydance Media instead in a deal that is expected to close in the first half of 2025.

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Oilers forward Hyman injured in 1st, exits Game 4

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Oilers forward Hyman injured in 1st, exits Game 4

EDMONTON, Alberta — Edmonton Oilers‘ top-line forward Zach Hyman was ruled out for the rest of Game 4 of the Western Conference finals Tuesday against the Dallas Stars after taking a hit from forward Mason Marchment, ESPN’s Emily Kaplan reported on the game broadcast.

The first-period collision appeared to immediately rattle Hyman, who dropped his stick and seemed to favor his right arm or wrist. Hyman went directly to the Oilers’ dressing room and did not return.

Hyman has been a key member of the Oilers’ postseason success, registering a league-leading 119 hits in 14 playoff games and scoring five goals and 11 points. He’s a fixture on the team’s top forward unit with Connor McDavid and is part of both the Oilers’ power play and penalty kill.

Edmonton was already down a forward going into Game 4 with Connor Brown sidelined after a hit from Dallas defenseman Alexander Petrovic in Sunday’s Game 3. Viktor Arvidsson returned to the lineup as Brown’s replacement on the fourth line.

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Referee Rooney returns, 11 days after high stick

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Referee Rooney returns, 11 days after high stick

EDMONTON, Alberta — NHL official Chris Rooney was back on the ice Tuesday night for Game 4 of the Western Conference finals between the Edmonton Oilers and Dallas Stars.

It was the veteran referee’s conference finals debut, and a fitting return for Rooney given the circumstances. It was Rooney’s first game since he took a high stick to the face on May 17 during Game 7 of the Eastern Conference second-round series between the Toronto Maple Leafs and Florida Panthers.

Rooney was injured 13 seconds into the second period when Panthers’ defenseman Niko Mikkola caught him with the end of his stick while fighting for a puck. Rooney fell to the ice and was tended to by trainers from both teams.

While bloodied, he was able to leave under his own power. Rooney sustained a black eye and received stitches for his injury but had no lasting damage. He was replaced at the time by Garrett Rank, in the building on standby in case on injury.

It was clear even the day after his injury that Rooney, 50, hoped to resume duties at some point in the playoffs. The Boston native was finally able to step in for Game 4 with fellow referee Dan O’Rourke.

The pair was joined by linesmen Ryan Gibbons and Matt MacPherson. Referee Graham Skilliter and linesman Ryan Daisy were in the building as alternates.

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Hintz (leg) back in action, joins Stars’ top line

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Hintz (leg) back in action, joins Stars' top line

EDMONTON, Alberta — Dallas Stars forward Roope Hintz is back in the lineup for Game 4 of the Western Conference finals Tuesday.

The club’s top skater, sidelined since Game 2, when he took a slash to the left leg from Edmonton Oilers defenseman Darnell Nurse, was placed on the top line, alongside Jason Robertson and Mikko Rantanen after taking warmups and line rushes prior to puck drop.

Hintz also took part in warmups before Game 3 on Sunday but exited early and was ruled out. He was back on the ice for Dallas’ optional practice Monday and told reporters he was “feeling good” and “trying to do everything I can” to get back in for Game 4.

It was early in the third period of Game 2 when Hintz — parked in front of the Oilers’ net — shoved Nurse from behind, and the Oilers’ blueliner responded by swinging his stick at Hintz’s leg. Hintz went down to the ice for several minutes before being helped off by Lian Bichsel and Mikael Granlund.

Nurse received a two-minute penalty for the slash but no supplementary discipline from the league. The blueliner addressed the incident publicly for the first time Tuesday, saying it didn’t come with malicious intent.

“I was backing up to net and I got shot in the back. And I think it was just a natural reaction [to respond],” Nurse said. “It’s probably a play that everyone in this room, whether you’re a net-front guy or D man, probably happens a dozen, two dozen times in a year. It’s unfortunate that I must have got [Hintz] in a bad spot. You don’t want to go out there and hurt anyone. But it was just one of those plays that happens so often.”

Having Hintz unavailable hurt the Stars in Game 3, a 6-1 drubbing by the Oilers that put Dallas in a 2-1 hole in the best-of-seven series. Hintz is the Stars’ second-leading scorer in the postseason, with 11 goals and 15 points through 15 games. He was hopeful when taking warmups Sunday that he’d feel good enough to get back in, but a quick discussion with the training staff made it clear he wasn’t ready.

Before Tuesday night, coach Peter DeBoer had since classified Hintz’s status as day-to-day.

“Of course you want to go every night, but sometimes you just can’t,” Hintz said. “I don’t know how close I [was to playing]. But I have played many years [and I] know when it’s good and when it’s not. I should be good to know that [when] it comes to that decision.”

The Oilers will have some lineup changes of their own to sort through in Game 4. Connor Brown, who is out after taking a hit from Alexander Petrovic in Game 3, will be replaced by Viktor Arvidsson. Calvin Pickard, injured in Edmonton’s second-round series against Vegas, will return to back up Stuart Skinner. And Edmonton continues to wait on defenseman Mattias Ekholm, who is getting closer to returning from a lower-body injury.

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