WarnerMedia

Warner Media, LLC

Company type	Subsidiary
Industry	Media and entertainment
Predecessor	Time Warner
Founded	1990 (1990)
Founder	Steve Ross (as Warner Communications)
Defunct	April 8, 2022 (2022-04-08)
Fate	Merged with Discovery, Inc. to form Warner Bros. Discovery
Headquarters	New York City , United States
Area served	Worldwide
Products	Film, television, cable networks, streaming services (HBO Max), publishing (DC Comics), sports broadcasting
Owner	AT&T (until merger)
Number of employees	26,300 (1986, Warner Communications)
Parent	AT&T (until 2022)

Warner Media, LLC (operating under the trade name WarnerMedia) was a global American media and entertainment corporation owned by AT&T, with its headquarters located at 30 Hudson Yards in New York City.

Established in 1990 as Time Warner through the merger of Time Inc. and Warner Communications, the firm engaged in multiple sectors including film, television, and cable. Its principal holdings comprised WarnerMedia Studios & Networks, which included Turner Broadcasting, HBO, Cinemax, Warner Bros., DC Comics, New Line Cinema, and a 50% ownership of The CW alongside CBS Entertainment Group; WarnerMedia News & Sports, featuring CNN, Turner Sports, and AT&T SportsNet; WarnerMedia Sales & Distribution, which incorporated the digital media company Otter Media; and WarnerMedia Direct, responsible for the HBO Max streaming platform.

Although Time Inc. was spun off in 2014, the company continued under the Time Warner name until 2018 when AT&T acquired it for $85.4 billion plus debt assumption, valuing shares at $107.50 each. Following AT&T’s successful defense against an antitrust lawsuit from the U.S. Department of Justice, the acquisition was finalized in June 2018, leading to the rebranding of the company as WarnerMedia. Under AT&T's stewardship, WarnerMedia prioritized growth in its streaming services through HBO Max and consolidated its entertainment divisions into WarnerMedia Studios & Networks Group by August 2020.

On May 17, 2021, AT&T revealed intentions to merge WarnerMedia with Discovery, Inc., creating a new publicly traded entity named Warner Bros. Discovery. This merger was completed on April 8, 2022.

Former assets of WarnerMedia included Time Inc., TW Telecom, AOL, Time Warner Cable, AOL Time Warner Book Group, and Warner Music Group—properties that were divested or spun off over time. As of 2024, the company held the No. 130 position on the Fortune 500 ranking based on revenue.

Warner Communications (1972–1990)

Following a financial scandal related to its parking operations, the entertainment division of Kinney National Company was restructured into Warner Communications on February 10, 1972. Founded by entrepreneur Steve Ross, Warner Communications emerged as a significant force in entertainment, overseeing key subsidiaries such as Warner Bros. Pictures, Warner Music Group (WMG), Warner Books, and Warner Cable. Its portfolio also encompassed DC Comics and Mad magazine. The European publishing branch operated under the name Williams Publishing across several countries but was largely divested by 1979.

Warner Communications expanded strategically through acquisitions and partnerships. In 1979, it collaborated with American Express to create Warner-Amex Satellite Entertainment, which managed cable networks including MTV, Nickelodeon, The Movie Channel, and later VH1. Warner Communications acquired full ownership in 1984 but sold this enterprise to Viacom in 1985; Viacom subsequently renamed it MTV Networks (now Paramount Media Networks). Other acquisitions featured the purchase of Popular Library from CBS Publications in 1982 and holding a 48% share in Major League Baseball’s Pittsburgh Pirates until 1986.

By 1986, Warner Communications reported an operating income of $7.965 billion and employed roughly 26,300 individuals, demonstrating robust financial results within its diversified entertainment portfolio.

Financial challenges and corporate restructuring

By the end of the 1980s, Warner was grappling with financial setbacks. Between 1976 and 1984, Warner Communications held ownership of Atari, Inc., but substantial losses resulting from the video game crash of 1983 led to Atari being spun off in 1984. Seizing this opportunity, Time Inc. declared its intent to merge with Warner Communications on March 4, 1989.

During the summer of 1989, Paramount Communications (then operating as Gulf+Western) initiated a hostile takeover bid valued at $12.2 billion to acquire Time Inc., aiming to prevent the Time-Warner merger. In response, Time Inc. increased its offer to $14.9 billion in a combination of cash and stock. Paramount pursued legal action to block the merger but suffered defeats twice in Delaware courts, ultimately abandoning both the acquisition attempt and the lawsuit. The merger was finalized on January 10, 1990.

Time Warner (1990–1992) and Time Warner Entertainment (1992–2001)

In 1993, US West collaborated with Time Warner Entertainment to create what evolved into TW Telecom, initially named Time Warner Communications, with the objective of expanding fiber-optic telephone services. US West acquired a 26% stake in the entertainment division, which subsequently passed through ownership changes involving MediaOne, AT&T Broadband, and eventually Comcast. Comcast divested its interest in 2003, transitioning the brand into a subdivision under Time Warner Cable.

In 1991, HBO alongside Cinemax introduced multiplexing for premium cable channels. HBO became the pioneer in digital television transmission by 1993 and launched high-definition broadcasts by 1999. CNN debuted CNN.com in 1995, establishing itself as a premier global digital news outlet. In 1996, Warner Bros. spearheaded the launch of DVD technology, which supplanted VHS as the dominant home video format.

Time Warner Entertainment completed full ownership of Six Flags Theme Parks by 1993, rescuing it from financial distress; it later sold the parks to Premier Parks in 1998.

Dick Parsons assumed the presidency of Time Warner Entertainment in 1995 while operational leaders reported directly to CEO Gerald M. Levin.

On October 10, 1996, Time Warner Entertainment acquired Turner Broadcasting System, marking its return to cable television programming and reclaiming rights to pre-1950 Warner Bros. films previously owned by Turner (with Warner Bros. managing sales and distribution). Turner gained access to post-1950 Warner Bros. content along with other assets. This acquisition integrated film studios New Line Cinema and Castle Rock Entertainment into Warner Bros., while also securing access to Metro-Goldwyn-Mayer’s library prior to May 1986 and pre-1991 animation libraries from studios such as Hanna-Barbera and Ruby-Spears.

AOL-Time Warner Merger (2001–2003)

In January 2000, America Online (AOL) announced its intention to acquire Time Warner Entertainment for $183 billion. Due to AOL’s larger market valuation, its shareholders held a 55% stake in the combined company, while Time Warner shareholders owned 45%, effectively positioning it as an AOL-led merger despite Time Warner’s superior assets and revenues. Time Warner aimed to embrace digital transformation, whereas AOL sought tangible assets to bolster its stock price.

The transaction was filed in February 2000 and merged both companies into a new entity. Regulatory approvals were granted by the Federal Trade Commission, Federal Communications Commission, and European Commission by early 2001, with completion occurring that January.

AOL Time Warner Inc. was envisioned as a merger of equals. Gerald Levin, former CEO of Time Warner Entertainment, assumed the CEO role; AOL co-founder Steve Case became Executive Chairman; AOL’s Robert W. Pittman and Time Warner’s Dick Parsons acted as Co-Chief Operating Officers; and AOL CFO J. Michael Kelly took on CFO responsibilities.

AOL President Bob Pittman anticipated rapid expansion by combining AOL’s internet reach with Time Warner’s content assets—including magazines, books, music, and film—targeting an audience of 130 million subscription relationships via cable distribution networks.

Nevertheless, AOL’s growth faltered due to declining advertising revenues and competition from broadband providers. This resulted in a substantial goodwill impairment and a record $99 billion loss in 2002, causing AOL’s market capitalization to fall dramatically from $226 billion to approximately $20 billion.

Internal discord intensified after Vice-Chairman Ted Turner openly criticized management performance, prompting Steve Case to attempt removing CEO Levin. Although unsuccessful initially, Levin resigned late in 2001 with effect in May 2002. Dick Parsons succeeded him as CEO; CFO Kelly was reassigned as COO of AOL; Wayne Pace replaced Kelly as CFO; Barry Schuler was shifted from AOL CEO to lead a newly formed content division; and Pittman briefly served as interim AOL CEO.

Anticipated synergies largely failed due to autonomous operations within Time Warner divisions resistant to integration efforts. A newly implemented incentive system linking compensation to overall corporate performance generated tensions, with division leaders attributing underperformance issues primarily to AOL. Pittman faced criticism for overly optimistic growth projections and encountered opposition from print media executives led by Don Logan. Parsons’ participative leadership style limited Pittman’s influence over entrenched division heads.

Pittman resigned in July 2002 amid burnout and frustration stemming from internal resistance and limited career advancement under Parsons’ leadership. His exit was welcomed by groups seeking to reverse effects of the merger.

Following Pittman’s departure, his responsibilities were divided between Jeffrey Bewkes (HBO CEO) and Don Logan (Time CEO), who managed separate media groups including AOL as one division among others. Both executives had initially opposed the merger but were regarded as effective operational leaders reporting directly to CEO Parsons.

Logan, respected within Time Warner but unpopular among AOL personnel due to his conservative management approach, promptly moved to remove Pittman’s allies from AOL leadership roles.

Time Warner (2003–2018)

After the merger between AOL and Time Warner, Steve Case, the chairman, became a prominent figure by leading a new committee aimed at harnessing Internet-related synergies. Facing investor pressure, Case declared in January 2003 that he would not pursue re-election as executive chairman, with CEO Richard Parsons designated as chairman-elect. By July 2003, the company removed "AOL" from its corporate name and separated Time-Life’s ownership into Direct Holdings Americas, Inc. Later that year, to reduce its debt to $20 billion, Time Warner sold Warner Music Group to a consortium of investors led by Edgar Bronfman Jr. and Thomas H. Lee Partners. Case exited the board in 2005. Jeff Bewkes, who assumed the CEO role in 2008, later described the AOL merger as "the biggest mistake in corporate history."

In 2005, Time Warner made the maximum political contribution of $250,000 to President George W. Bush’s second inauguration. By late 2007, CEO Bewkes outlined intentions to divest Time Warner Cable and sell off AOL and Time Inc., aiming to concentrate on Turner Broadcasting, Warner Bros., and HBO. In 2008, New Line Cinema’s co-CEOs Bob Shaye and Michael Lynne resigned amid cost reduction efforts intended to integrate the studio into Warner Bros.

The company spun off Time Warner Cable in 2009—now part of Charter Communications—and later separated AOL into an independent entity; Verizon acquired AOL in 2015.

Early in 2010, Time Warner boosted its ownership in HBO Latin America Group by $217 million, increasing HBO’s share to 80%, and fully purchased HBO Europe for $136 million. That August, it acquired UK-based Shed Media for £100 million and integrated its distribution with Warner Bros. International Television Production. The company also expanded in Latin America through the acquisition of Chilevisión.

In May 2011, Warner Bros. Home Entertainment acquired Flixster, a movie discovery app, along with its subsidiary Rotten Tomatoes. In June 2012, via Warner Bros. Television, Time Warner purchased Alloy Entertainment to target teen and young adult demographics. Turner Sports also acquired Bleacher Report, a sports news website, for roughly $175 million.

On March 6, 2013, Time Warner declared plans to spin off its publishing division Time Inc., a process completed by June 2014 that established it as an independent publicly traded company.

January 2014 saw Time Warner announce the relocation of its headquarters to 30 Hudson Yards within Manhattan’s Hudson Yards Redevelopment Project, selling its stake in the Columbus Circle building for $1.3 billion; this transition was finalized in 2019.

In June 2014, Rupert Murdoch proposed an $80 billion takeover bid for Time Warner at $85 per share via stock and cash; however, the board rejected it in July due to antitrust issues related to CNN. Murdoch withdrew his offer in August 2014.

This era was characterized by strategic restructuring through divestitures and acquisitions designed to streamline operations while focusing on core media properties for improved financial results and market positioning.

AT&T acquisition; as WarnerMedia (2018–2021)

On October 20, 2016, AT&T initiated negotiations to acquire Time Warner with the goal of expanding its media portfolio alongside telecommunications assets such as DirecTV. The $85.4 billion merger was announced two days later, positioning AT&T to rival Comcast’s media acquisitions. The transaction underwent scrutiny over concerns about potential leverage over content distribution.

Despite controversies surrounding CNN’s ownership amid criticism from the Trump administration, authorities pledged an impartial evaluation. The merger deadline was extended until June 21, 2018.

On June 12, 2018, District Judge Richard J. Leon ruled in favor of AT&T without imposing conditions due to insufficient proof of reduced competition. Although DOJ appealed, it did not request an injunction blocking integration. The acquisition closed on June 14; Jeff Bewkes stepped down as CEO of Time Warner and was succeeded by John Stankey who oversaw integration efforts while rebranding the company as WarnerMedia.

By late 2018, WarnerMedia announced plans for a streaming platform featuring its entertainment brands. Kevin Reilly was appointed chief content officer for digital and subscription services in December. In February 2019, U.S. Court of Appeals upheld merger approval; DOJ opted not to pursue further appeals.

Kevin Reilly extended his contract in May 2019 while assuming additional responsibilities including president of TruTV and chief content officer for direct-to-consumer offerings. Otter Media was reassigned under WarnerMedia Entertainment with Andy Forssell supervising streaming operations; HBO Max was introduced as the streaming brand launching in May 2020.

In August 2020, WarnerMedia implemented significant restructuring involving roughly 800 layoffs aimed at cost reduction amid pandemic-driven financial challenges. Networks such as TBS, TNT, TruTV were merged with Cartoon Network and related assets into WarnerMedia Studios & Networks Group led by Casey Bloys.

Plans to divest Warner Bros. Interactive Entertainment were abandoned due to growth prospects within gaming and favorable reception of upcoming titles.

In December 2020, WarnerMedia acquired You.i TV to enhance cross-platform streaming technology supporting HBO Max’s international rollout.

Spin-off from AT&T and merger with Discovery, Inc. (2021–2022)

On May 16, 2021, AT&T initiated discussions to combine WarnerMedia with Discovery, Inc., a firm known for its focus on unscripted and factual programming, aiming to establish a publicly traded company shared among investors. This transaction was formally announced as a Reverse Morris Trust arrangement, granting AT&T shareholders a 71% ownership stake, while Discovery's CEO David Zaslav was anticipated to lead the merged organization.

In June 2021, Electronic Arts purchased Playdemic, the mobile gaming studio under Warner Bros. Interactive Entertainment, for $1.4 billion. Later that year, WarnerMedia divested TMZ to Fox Corporation for roughly $50 million.

By November 2021, intentions surfaced to merge HBO Max and Discovery+ streaming services into one platform through a two-step process: beginning with bundling the services and eventually fully integrating them. Discovery also revealed plans to rebrand itself as Warner Bros., adjusting its stock accordingly.

The European Commission approved the merger in December 2021, with completion expected in April 2022 pending approval from shareholders and regulatory bodies. Early in 2022, WarnerMedia and ViacomCBS considered selling either a majority interest or the entirety of The CW network, with Nexstar Media Group emerging as a primary bidder; agreements were structured to maintain ongoing revenue from programming.

By January 2022, the closing of the merger was projected for the second quarter. AT&T intended to spin off WarnerMedia in a $43 billion deal that received clearance from Brazil’s antitrust authority Cade and the U.S. Department of Justice by February. On March 11, Discovery shareholders voted in favor of the merger.

The WarnerMedia-Discovery combination officially concluded on April 8, 2022, signaling AT&T’s departure from the entertainment industry. Following this transition, several senior executives including CEO Jason Kilar, WarnerMedia Studios Chair Ann Sarnoff, HBO Max GM Andy Forssell, CFO Jennifer Biry, CHRO Jim Cummings, CRO Tony Goncalves, Chief Inclusion Officer Christy Haubegger, General Counsel Jim Meza, and CTO Richard Tom resigned.

After merging into Warner Bros. Discovery (WBD), WarnerMedia ceased functioning as an independent entity; however, its corporate name continues to appear on products from WBD divisions such as Cartoon Network and Adult Swim DVD releases.

Units

WarnerMedia’s structure comprised five principal divisions:

• WarnerMedia Studios & Networks oversaw television and film production operations including Warner Bros.’ film, television, and animation studios. This division also incorporated Warner Bros. Interactive Entertainment, Warner Bros. Home Entertainment, comic publisher DC Entertainment, as well as specialty cable channels (Cartoon Network, Adult Swim, Boomerang, and Turner Classic Movies). Additional assets included premium networks HBO and sister channel Cinemax, former Turner networks (TBS, TNT, and TruTV), plus a 50% ownership of The CW Television Network shared with Paramount Global.
• WarnerMedia News & Sports encompassed global news broadcasting and sports content through outlets such as CNN, the Turner Sports division, and regional AT&T SportsNet channels.
• WarnerMedia Sales & Distribution was responsible for advertising sales within the U.S., distribution logistics, and content licensing activities; it included digital media subsidiaries like Otter Media (featuring Fullscreen and Rooster Teeth).
• WarnerMedia Direct concentrated on product innovation, marketing initiatives, consumer engagement strategies, and worldwide deployment of the direct-to-consumer streaming platform HBO Max.
• WarnerMedia International managed international adaptations of domestic channels, localized linear business operations, commercial ventures, legacy streaming platforms such as HBO Portugal and select HBO Go markets, alongside regional programming tailored for HBO Max.

Leadership

* The executives listed held their positions until the WarnerMedia and Discovery, Inc. merger completed on April 8, 2022.

• Jason Kilar (Chief Executive Officer)
  • Michael Bass, Amy Entelis, and Ken Jautz (Interim Co-Leads, CNN)
  • Jennifer S. Biry (Chief Financial Officer)
  • James Cummings (Executive Vice President and Chief Human Resources Officer)
  • Andy Forssell (Executive Vice President and General Manager, HBO Max)
  • Tony Goncalves (Executive Vice President and Chief Revenue Officer)
  • Christy Haubegger (Executive Vice President, Communications and Chief Inclusion Officer)
  • James Meza (Executive Vice President and General Counsel)
  • Ann Sarnoff (Chairperson and CEO, WarnerMedia Studios & Networks Group)
  • Richard Tom (Chief Technology Officer)
  • Gerhard Zeiler (President, WarnerMedia International)

External links

• (archived)