Warner Bros Discovery is considering a breakup of its businesses, including separating streaming and studio operations from legacy TV networks.

The move is in response to declining stock prices and significant debt, with the company facing $39 billion in debt.

CEO David Zaslav is exploring options such as selling assets or creating a new company to address the debt issue.

The company's stock has dropped 70% since its merger, prompting discussions of potential mergers or acquisitions with other companies.

Warner Bros Discovery plans to cut nearly 1,000 jobs as part of its restructuring efforts.

Media analyst Jessica Reif Erlich suggests exploring strategic options to increase shareholder value, such as spinning off streaming and studio assets into a standalone company.

Despite the challenges, Erlich maintains a 'buy' rating on the company but lowers the price target to $12.

Investors reacted positively to the news, with WBD stock trading up over 6% at $7.88.

Warner Bros Discovery has not yet made a final decision on its future structure, reflecting broader industry trends towards restructuring and reevaluating previous mergers.