Warner Bros Discovery is mulling a plan to split its streaming and studio units from its legacy TV networks as one option to boost its lacklustre share price.

The FT reports chief executive David Zaslav was weighing strategic options, including spinning off its Warner Bros movie studio and Max streaming service into a new company unburdened by most of the group’s current $39 billion net debt.

WBDs market cap has fallen by a third to $20 billion in the past year, wants to find a solution to what it sees as neglected value. Among WBD’s biggest stockholders are John Malone and the Newhouse family, which controls Condé Nast.

It is also reported WBD has informally approached rival media groups to see if they would be interested in exploring M&A options with some of its existing assets.

A break-up appears to be the strongest option with most of its debt remaining with the mature pay-TV networks business (where most of the cashflow still is) in such a scenario. But analysts at Bank of America have warned that such a split could have a “potentially devastating” impact on bondholders, and WBD rival Lionsgate recently faced a creditor revolt after separating its Starz pay-TV network.

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Tags: WBD, Zaslav