Warner Bros Discovery rallied on break-off rumour

Warner Bros Discovery (NASDAQ:WBD) shares traded on the front foot on Thursday amid reports that it is considering a break-up, to separate its streaming and content business from its legacy TV networks.

Such a move could separate the premier new company comprising the Warner Bros movie studio and the Max streaming service from the group’s $39 billion debt pile, according to financial media commentators.

It could also pave the way for non-core business and asset divestments.

The reports, citing ‘people familiar with the matter’, said that talks with advisors had remains informal and no final decisions had yet been made.

In New York, Warner Bros stock was up 4.5% changing hands at $8.69.