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Bank of America Analysts: Warner Bros. Discovery “Is Not Working,” suggesting that the David Zaslav-led company should spin off its linear TV brands into a new company saddled with debt.

A team of Wall Street pros throw kindling on the speculative M&A fire, suggesting that the David Zaslav-led company should spin off its linear TV brands into a new company saddled with debt.

The potential breaking apart of a historic studio, the procession of suitors, the thousands of employees on edge and eventual inking of a multibillion-dollar agreement to merge Paramount with the relatively upstart Skydance Media founded by a deep-pocketed heir, David Ellison, has kept executives and producers wondering what’s next (a “ go-shop ” window ending Aug. 21 is the next deadline). At current levels, we argue that exploring strategic alternatives such as asset sales, restructuring and/or mergers would create more shareholder value vs. the status quo,” the report, led by BoFA’s Jessica Reif Ehrlich, reads. (This suggestion reminds of how Rupert Murdoch split his empire in 2013 into what was viewed as higher-performing studio and TV assets like 20th Century and Fox News from his then-embattled portfolio of newspapers and book publishers that were seen as less of a growth stock.)

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