BMA has learned that Warner Bros Discovery’s leadership is working hard to address the significant decline in the company’s share price since its inception in 2022.

CEO David Zaslav and CFO Gunnar Wiedenfels have explored various options to reverse this trend. The possibility of splitting off the company’s shrinking TV channels from the streaming and studio businesses was considered, but ultimately proved impractical due to operational challenges and potential legal hurdles.

Rather than seeking to break up the group, Zaslav and Wiedenfels are considering selling smaller assets such as the Polish broadcaster TVN and a stake in Warner’s video games business. They believe that these measures, together with the group’s ongoing efforts to cut costs, reduce debt and divest non-core assets, will help improve the group’s financial position.

Despite the challenging market conditions, WBD’s management remains optimistic about the company’s true market capitalization, which it estimates to be around $60 billion. The company is focused on delivering value to investors and steering the company toward turnaround.

The company’s recent focus on cost-cutting and debt reduction, as well as divesting assets such as All3Media, reflect its efforts to adapt to the changing media landscape. However, the strategic importance and tax implications of potential divestments, particularly of CNN, are significant considerations for the company.

WBD’s management is aware of the current challenges facing the market, but despite the potential hurdles ahead, it is determined to increase the value of the company and remains confident in the company’s long-term prospects.