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Warner Bros. Discovery is saying That’s all, folks. On Monday, the media and entertainment conglomerate announced that it would break into two separate companies, one for its cable TV networks and the other for its streaming services and studio business. The split is expected to complete sometime next year, and each company will be publicly traded. In effect, the breakup will separate WBD’s flagship streaming service, HBO Max, along with its movie and television production operations, from its cable networks and news offerings, which include CNN, TNT, and many other networks. When its all said and done, the separation will more or less undo the merger between Warner and Discovery that occurred in 2022, when WarnerMedia was spun off from the mobile and wireless giant AT&T. Heres how itll all break down once the dust settles in 2026: Global Networks Global Networks, as company management refers to it, will include many of WBDs entertainment, news, and sports brands. That includes TV networks like CNN, Discovery, and TNT Sports in the United States. But there will be differences depending on international regions and countries, and depending on specific rights agreements. Global Networks will also house Bleacher Report and certain digital products, like the Discovery+ streaming service. Gunnar Wiedenfels, WBDs current CFO, will become the president and CEO of Global Networks. Streaming and Studios “Streaming and Studios” will become the home of the companys development and production assets, and more. It will include Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, HBO Max, and their respective film and television libraries. David Zaslav, WBDs current CEO, will remain CEO of WBD Streaming & Studios. What have WBD’s executives said about this split? During a conference call on Monday morning, Zaslav said were focusing on the next stage of transformation of WBD, and that the separation will allow each of these strong companies to achieve their maximum potential. Each company will have its own dedicated management team and board, Zaslav said, with unique objectives and priorities. He added that we expect all the factors to come together to unlock valuethese companies will be better aligned with shareholders. Wiedenfels, joining Zaslav on the call, said that the whole concept of the separation is to create two strong and well positioned companieswe feel very confident about the compelling nature about both portfolios, adding that he saw the separation as a natural progression of WBD. What does this mean for shareholders? Both companies will be publicly traded. Moreover, the global networks business will hold up to a 20% retained stake in the streaming business. In the short term, Warner Bros Discovery stock (Nasdaq: WBD) was up about 7.59% in late-morning trading on Monday after the announcement. But the stock is flat year to date. Last week, shareholders voted to reject pay packages for top executives including Zaslav, although the vote was largely symbolic. WBD, since its merger a few years ago, has struggled with debt, rounds of layoffs and rebranding. (Notably, HBO Go became HBO Max, then Max, and is now back to HBO Max again). But Zaslav sounds upbeat about the future, and said the two companies coexisting should help each prosper. When we put these businesses together in the last three years, we built them out, and we paid down debt, Zaslav said. We believe [the separation] gives us a lot more flexibility in the future.
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U.S.-China trade talks in London this week are expected to take up a series of fresh disputes that have buffeted relations, threatening a fragile truce over tariffs.Both sides agreed in Geneva last month to a 90-day suspension of most of the 100%-plus tariffs they had imposed on each other in an escalating trade war that had sparked fears of recession.Since then, the U.S. and China have exchanged angry words over advanced semiconductors that power artificial intelligence, “rare earths” that are vital to carmakers and other industries, and visas for Chinese students at American universities.President Donald Trump spoke at length with Chinese leader Xi Jinping by phone last Thursday in an attempt to put relations back on track. Trump announced on social media the next day that trade talks would be held on Monday in London. Technology is a major sticking point The latest frictions began just a day after the May 12 announcement of the Geneva agreement to “pause” tariffs for 90 days.The U.S. Commerce Department issued guidance saying the use of Ascend AI chips from Huawei, a leading Chinese tech company, could violate U.S. export controls. That’s because the chips were likely developed with American technology despite restrictions on its export to China, the guidance said.The Chinese government wasn’t pleased. One of its biggest beefs in recent years has been over U.S. moves to limit the access of Chinese companies to technology, and in particular to equipment and processes needed to produce the most advanced semiconductors.“The Chinese side urges the U.S. side to immediately correct its erroneous practices,” a Commerce Ministry spokesperson said.U.S. Commerce Secretary Howard Lutnick wasn’t in Geneva but will join the talks in London. Analysts say that suggests at least a willingness on the U.S. side to hear out China’s concerns on export controls. China shows signs of easing up on rare earths One area where China holds the upper hand is in the mining and processing of rare earths. They are crucial for not only autos but also a range of other products from robots to military equipment.The Chinese government started requiring producers to obtain a license to export seven rare earth elements in April. Resulting shortages sent automakers worldwide into a tizzy. As stockpiles ran down, some worried they would have to halt production.Trump, without mentioning rare earths specifically, took to social media to attack China.“The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US,” Trump posted on May 30.The Chinese government indicated Saturday that it is addressing the concerns, which have come from European companies as well. A Commerce Ministry statement said it had granted some approvals and “will continue to strengthen the approval of applications that comply with regulations.”The scramble to resolve the rare earth issue shows that China has a strong card to play if it wants to strike back against tariffs or other measures. Plan to revoke student visas adds to tensions Student visas don’t normally figure in trade talks, but a U.S. announcement that it would begin revoking the visas of some Chinese students has emerged as another thorn in the relationship.China’s Commerce Ministry raised the issue when asked last week about the accusation that it had violated the consensus reached in Geneva.It replied that the U.S. had undermined the agreement by issuing export control guidelines for AI chips, stopping the sale of chip design software to China and saying it would revoke Chinese student visas.“The United States has unilaterally provoked new economic and trade frictions,” the ministry said in a statement posted on its website.U.S. Secretary of State Marco Rubio said in a May 28 statement that the United States would “aggressively revoke visas for Chinese students, including those with connections to the Chinese Communist Party or studying in critical fields.”More than 270,000 Chinese students studied in the U.S. in the 2023-24 academic year. Ken Moritsugu, Associated Press
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The third U.N. Ocean Conference opened Monday as pressure mounts for nations to turn decades of promises into real protection for the sea.French President Emmanuel Macron, delivering the keynote address in the host city of Nice, urged countries to move “from words to deeds” in safeguarding the oceans. He warned that “the fight for the ocean is at the heart of the years-long battles we’ve been wagingfor biodiversity, for climate, for our environment, and for our health.”The conference comes as just 2.7% of the ocean is effectively protected from destructive extractive activities, according to the nonprofit Marine Conservation Institute. That’s far below the target agreed under the “30×30” pledge to conserve 30% of land and sea by 2030.Atop this year’s agenda is ratification of the High Seas Treaty. Adopted in 2023, the treaty would for the first time allow nations to establish marine protected areas in international waters, which cover nearly two-thirds of the ocean and are largely ungoverned.“It’s the Wild West out there with countries just fishing anywhere without any sort of regulation, and that needs to change,” said Mauro Randone, regional projects manager at the World Wildlife Fund’s Mediterranean Marine Initiative. “The high seas belong to everyone and no one practically at the same time, and countries are finally committing to establish some rules.”The ocean is critical in stabilizing Earth’s climate and sustaining life. It generates 50% of the oxygen we breathe, absorbs around 30% of carbon dioxide emissions and captures more than 90% of the excess heat caused by those emissions. Without a healthy ocean, experts warn, climate goals will remain out of reach.The treaty will only come into force once 60 countries ratify it. As of Monday, just 32 countries had. Advocates hope UNOC can build enough momentum to cross the threshold, which would allow for the first official Oceans Conference of Parties.“Two-thirds of the ocean is areas beyond national jurisdictionthat’s half our planet,” said Minna Epps, director of global ocean policy the International Union for Conservation of Nature. “We cannot possibly protect 30% of the ocean if it doesn’t include the high seas.”South Korea, France and the European Union have championed the treaty, but most large ocean nations have yet to ratify it, including the rest of the G20. Thousands of attendees are expected in Nicefrom delegates and heads of state to scientists and industry leaders. The United States has yet to confirm a formal delegation. Moving from protections on paper to something real Beyond new commitments, the conference highlights the growing gap between marine protection declarations and real-world conservation.France, the conference cohost, claims to have surpassed the 30% target for marine protection. But environmental groups say only 3% of French waters are fully protected from harmful activities like bottom trawling and industrial fishing.In 2024 alone, more than 100 bottom-trawling vessels were recorded spending over 17,000 hours fishing within France’s six marine nature parks, according to ocean advocacy group Oceana.“The government declares these as protected areas, but this is a lie,” said Enric Sala, founder of National Geographic Pristine Seas marine reserve project. “Most of it is political box-ticking. It’s all paper parks.”That criticism is echoed across the continent. A new World Wildlife Fund report found that although more than 11% of Europe’s marine area is designated for protection, just 2% of EU waters have management plans in place.Fabien Boileau, director of marine protected areas at France’s Office for Biodiversity, acknowledged the presence of bottom trawling in French protected areas, but said it was part of a phased strategy.“In France, we made the choice to designate large marine protected areas with relatively low levels of regulation at first, betting that stronger protections would be developed over time through local governance,” he said. “Today, we’re gradually increasing the number of zones with stricter protections within those areas.” France’s Port-Cros: A model for conservation While many marine protected areas struggle with enforcement, others show what real protection can achieve. Off the southern coast of France, Port-Cros National Park is one of the oldest marine reserves in the Mediterranean. There, strict anchoring bans have allowed vast seagrass meadows to grow undisturbed. Massive groupers patrol rocky outcrops, brightly colored nudibranchs munch on algae, and schools of large corbs glide through the shallows, undisturbed by fishing lines.“Thanks to the protections that have been in place since 1963, we can observe species that are much larger than elsewhere in the Mediterranean and at a much higher density than in other areas,” said Hubert Flavigny, manager of Mio Palmo dive center in Hyeres, France. Still, such examples remain exceptions.Advocates say industrial fishing lobbies continue to resist stricter protections, despite evidence that well-managed reserves boost long-term fisheries through the “spillover effect,” whereby marine life flourishes in nearby waters.“Protection is not the problemoverfishing is the problem,” said Sala. “The worst enemy of the fishing industry is themselves.”Frustrated by government inaction, environmental groups have taken enforcement into their own hands. In May, Greenpeace dropped 15 limestone boulders into France’s Golfe du Lion, aiming to physically block bottom trawling in a marine area that has long been designated for protection. The protected zone was established in 2008 to preserve deep-sea ecosystems, yet 12 trawlers continue to operate there, despite scientific warnings of ecological collapse, according to activist group MedReAct.The Golfe is now one of the most overfished areas in the Mediterranean. What will UNOC deliver? The conference will feature 10 panels on topics such as blue finance, sustainable fisheries and plastic pollution. Deep sea mining is expected to feature in broader discussions, while small island states are likely to use the platform to advocate for increased climate adaptation funding.The outcome of these discussions will form the basis of the Nice Ocean Action Plana declaration of voluntary commitments to be adopted by consensus and presented at the United Nations in New York this July.“There cannot be a healthy planet without a healthy ocean,” said Peter Thomson, U.N. special envoy for the ocean. “It’s urgent business for us all.” _Follow Annika Hammerschlag on Instagram @ahammergram. The Associated Press receives support from the Walton Family Foundation for coverage of water and environmental policy. The AP is solely responsible for all content. For all of AP’s environmental coverage, visit https://apnews.com/hub/climate-and-environment Annika Hammerschlag, Associated Press
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