Warner Bros Discovery (WBD) is reportedly considering whether to split its streaming and studio business from its linear TV channels in a bid to boost its stock market price.
According to a report in the FT, CEO David Zaslav is considering a number of options including selling assets or separating the film studio and Max streaming service into a new company, to free them from the almost $40 million debt currently weighing down the stock price.
WBD’s market capitalisation has dropped by a third to about $20 billion in the last year, adds the report.
The company has not begun any specific transaction and has yet to bring in bankers that would initiate any such deal. However, according to the FT, senior executives have been talking to advisers about a way to boost the stock price.
They are also said to have approached rival media groups about exploring the possibility of M&A options with some of its existing assets.
Earlier this week, analysts at Bank of America suggested that the “current composition as a consolidated public company is not working. At current levels, we argue that exploring strategic alternatives such as asset sales, restructuring and/or mergers would create more shareholder value vs. the status quo.”
Warner Bros. Discovery launched in 2022 following a $43 billion spinoff of Warner’s properties from AT&T to Discovery. Its linear TV brands include CNN, HBO, TNT, Discovery Channel and Food Network, as well as Eurosport and TNT Sports in the UK.
