HomeFrom Break-Up to Breakthrough: WBD’s Tactical Asset OffloadingBlogFrom Break-Up to Breakthrough: WBD’s Tactical Asset Offloading

From Break-Up to Breakthrough: WBD’s Tactical Asset Offloading

Warner Bros Discovery (WBD) is actively seeking to avoid a corporate break-up as its share price continues to decline, according to insider sources. Following a nearly 70% drop in stock value since the company’s formation in 2022, CEO David Zaslav and CFO Gunnar Wiedenfels are exploring various strategies to stabilize the business.

Instead of pursuing a full break-up, which management views as overly complex and legally challenging, WBD is considering selling smaller assets. Potential sales include the Polish broadcaster TVN and a stake in Warner’s video game division, known for its valuable Harry Potter IP. This approach is seen as a more manageable solution compared to the operational and legal hurdles of a split.

WBD’s management believes that the company’s true value is significantly higher than its current market capitalization of $7.88 per share, aiming for a target of $25 per share. Despite recent stock fluctuations, they remain committed to turning around the company through cost cuts, debt repayment, and strategic asset sales, including the recent disposal of All3Media, the UK production company.

The group, formed in April 2022 from the merger of Discovery and WarnerMedia, has faced tough competition from streaming giants like Netflix and Disney. The upcoming quarterly earnings report could provide further insights into the company’s recovery strategy.

For more details, read the full report here.