The company, which also owns HBO, Warner Bros. Studios and CNN, has seen its stock price drop nearly 70 percent since it was formed in 2022 through a merger intended to strengthen its position against streaming giants such as Netflix and Disney, Britain's Financial Times has reported.
Since its inception, the group has focused on cutting costs and reducing debt, conducting several rounds of layoffs and selling some assets to better compete in the fierce streaming battle, according to the Financial Times.
CEO David Zaslav and CFO Gunnar Wiedenfels have explored "all options" to prevent further losses, ultimately deeming a separation of the company’s struggling TV channels from its streaming and film operations as not the best course of action at this time.
Originally, a split appeared viable, but deeper analysis revealed it would lead to "significant operational challenges," such as issues with sports broadcasting rights and content distribution between traditional TV and streaming platforms.
Sources familiar with the discussions indicated that such a division could prompt lawsuits from debt-laden investors and complicate content usage across various platforms and networks. A split was even described as a "nuclear option" by insiders, although circumstances could change.
Instead of a split, Zaslav and Wiedenfels are now looking to offload smaller assets and are considering offers for TVN or shares in Warner’s video game business, which includes lucrative rights to Harry Potter games, the Financial Times said on Tuesday.
(rt/gs)
Source: PAP, pb.pl, FT