Warner Bros. Discovery, the entertainment conglomerate behind cable network HBO, Warner Bros. film and TV studios, and streamer Max, is exploring several options that could help the company boost its plunging stock, including splitting its businesses.
According to a report by the Financial Times, Warner Bros, Discovery has drafted a plan that would see the company separate its studio and streaming business from its legacy television networks. The move would see Warner Bros studio and Max streaming service become a new company that would largely be unaffected by the group’s $39 billion debt.
Other options reportedly include selling some of the Warner Bros Discovery assets. It is important to note that the conglomerate is yet to hire an investment bank to assist it in the process, although it is already talking with outside advisors in an attempt to find the best solution.
Warner Bros, Discovery was formed in 2022 with the merger of AT&T’s WarnerMedia and Discovery, Inc. Since the merger, the company’s shares have dropped by 66%, leading to $20.39 billion in market cap. The stock is currently 28.64% down year-to-date but recently saw some positive movement on the back of rumors about break-up or sale options.