Warner Bros. Discovery (WBD) is reportedly considering a plan to split its digital streaming and studio businesses from its legacy linear television networks.
According to a report in The Financial Times, the US media giant is looking for ways to boost its sagging share price.
WBD’s market capitalisation has fallen by a third to about $20bn in the past year.
The Financial Times, quoting people familiar with the matter, said chief executive David Zaslav was examining several strategic options, ranging from selling assets to hiving off its Warner Bros movie studio and Max streaming service into a new company.
Read more The Bear and Shogun lead Emmy nominations
The report said most of the group’s debt of about $39bn could remain with the pay-TV networks business if WBD breaks up.
WBD declined to comment to the FT. People familiar with the matter said WBD could still ultimately decide to continue operating as it is currently structured.
WBD’s shares have fallen by about 70% since Warner Bros merged with Discovery two years ago. They have been affected by a falling advertising market, the high costs of developing its streaming offering, the Covid-19 pandemic, Hollywood strikes and some expensive box office flops.
The company is yet to hire an investment bank to initiate any specific transaction, according to the FT report.
Read more YouTube ranks second for non-sports content spend, says Ampere report
No comments yet