Mumbai: Warner Bros Discovery is contemplating a separation of its streaming and studio divisions from its traditional TV operations, as part of several strategies aimed at enhancing its stock value, according to sources.

CEO David Zaslav is considering this split along with other possibilities, such as selling certain assets, based on insights from sources familiar with the discussions. Executives are exploring the idea of creating a new company by spinning off the Warner Bros movie studio and Max streaming service, thereby isolating them from the company's current $39 billion debt burden.

The report indicates that the bulk of this debt - approximately $39 billion as of 31 March, as per a company filing -could be allocated to the pay-TV networks business if the separation occurs.

Warner Bros' shares have dropped nearly 27 per cent this year through Wednesday's close, placing the company's market value at $20.39 billion, according to LSEG data.