Warner Bros Discovery is reportedly exploring a potential breakup of its business, according to a CNBC report on Thursday.

The move comes as traditional cable TV continues to decline and media giants shift focus toward streaming and film studio operations.

Shares of WBD climbed nearly 4% following the report, reversing a drop of almost 6% earlier in the day after the company released disappointing first-quarter earnings. The quarterly results fell short of revenue expectations, with an 18% decline in studio revenue attributed in part to the underwhelming performance of the film Mickey 17.

Despite the overall downturn, WBD’s streaming segment delivered a bright spot, adding 5.3 million new subscribers—far exceeding analyst projections. Meanwhile, revenue from its cable TV division slid 7% as cord-cutting trends continued to weigh on the industry.

The company had hinted at a potential split as early as December 2024, when it began reporting financials under a new structure separating its studio and streaming units from its traditional cable networks. If finalized, the split would mirror moves by rivals such as Comcast, which is spinning off many of its cable channels to double down on streaming growth.

Analysts have long speculated that a breakup could unlock growth for Warner Bros Discovery, which was formed from the 2022 merger of Warner Media and Discovery. However, challenges remain.

“WBD would be leaner and have stronger growth potential without cable assets,” said Ross Benes, an analyst at eMarketer. “But finding a buyer could be difficult. Linear TV is deteriorating and WBD has big debts.”

The company currently holds $38 billion in gross debt. Warner Bros Discovery declined to comment on the CNBC report.