Warner Bros. Discovery (WBD) is reportedly considering a breakup of its businesses in what would be a major corporate shuffle for the company.
That news comes via a Financial Times report Wednesday night, which says WBD is discussing a “dramatic plan” to separate its streaming and studio operations from its legacy TV networks in order to combat a sagging stock price and a mountain of debt. The report comes just two years after the completion of the WarnerMedia/Discovery mega-merger.
According to the Financial Times report, WBD CEO David Zaslav is considering a number of options, "ranging from selling assets to hiving off its Warner Bros. movie studio and Max streaming service into a new company." That new company, the FT reports, would be "unburdened" by WBD's net $39 billion of debt.
Adding to WBD’s corporate troubles are is its persistently lackluster share price, which closed at $8.34 on Wednesday, with a current market cap of $20.3 billion. That market cap represents about a 70% plunge since the completion of the 2022 merger, per the New York Post.
Company leaders, too, have reportedly approached rival companies to explore M&A options should WBD decide to sell some of its assets. The FT notes that an investment bank hasn’t been hired to handle any large-scale transactions yet, although Zaslav spurred rumors when he attended the Allen & Company Conference in Sun Valley, Idaho, last week.
According to the report, a break-up of the business appears to be the “strongest option” at the moment. WBD could decide, however, to continue to operate as currently structured.
The news comes as WBD reportedly plans to slash nearly 1,000 jobs, and shortly after a leading Bank of America analyst, Jessica Reif Ehrlich, wrote in a message to clients that WBD should explore “strategic alternatives such as asset sales, restructuring and/or mergers would create more shareholder value vs. the status quo.”
IGN has reached out to WBD for comment.
Thumbnail credit: Kevin Dietsch/Getty Images
Alex Stedman is a Senior News Editor with IGN, overseeing entertainment reporting. When she's not writing or editing, you can find her reading fantasy novels or playing Dungeons & Dragons.
