Warner Bros. Discovery discussing plans to break up, FT reports

Warner Bros. Discovery (WBD) is discussing plans to split up, including splitting its digital streaming and studio businesses from its legacy television networks, The Financial Times’ Maria Heeter, Antoine Gara, Sujeet Indap, James Fontanella-Khan and Christopher Grimes report. According to people familiar with the matter, CEO David Zaslav is considering several strategic options, including selling assets to carving off its Warner Bros. movie studio and Max streaming service into a new company unburdened by most of the group’s current $39B net debt load. Warner Bros. Discovery has not yet hired an investment bank to initiate any specific transaction, but its top management has been talking to advisers to find a solution in shareholders’ best interest, people briefed on the matter say, adding that the company has also informally approached advisers to rival media groups to understand if they would be interested in exploring M&A options with some of its existing assets. The company previously considered combinations with Comcast’s (CMCSA) NBCUniversal and Paramount (PARA), which has since agreed to sell itself David Ellison’s Skydance studio, according to the report.