Warner Bros. Discovery (WBD) does not aim to split up the company, as the executives of the Hollywood conglomerate try to reverse the dramatic decline in the stock price. Since the founding of WBD in 2022, the stock price has fallen by almost 70 percent.

David Zaslav, CEO, and Gunnar Wiedenfels, CFO, recently considered "all options" to halt the decline, according to two people familiar with the matter. However, a detailed analysis of the consequences of a split revealed that separating the declining television networks from the streaming and studio business is not currently the best option.

As the Financial Times reported last month, WBD had prepared a plan to split the company. However, while such a division appeared "tempting" on paper, it would bring very significant operational challenges, said a person involved in the considerations.

In the best-case scenario, one would face years of legal challenges," the person added. A company spokesperson declined to comment.

A split could trigger lawsuits from debt investors and complicate the use of Warner's content across various platforms and networks, according to people familiar with the management's thinking. A company split was considered a "nuclear option," but the situation is fluid and circumstances could change.

Instead, management is considering the sale of smaller assets. For instance, offers for the sale of the Polish broadcaster TVN or a stake in Warner's video game business, which holds valuable intellectual property rights to Harry Potter games, are being considered.

WBD's management hopes that investors remain patient while they work on restructuring the company. They believe that the true market value should be about 60 billion dollars or 25 dollars per share, far above the 7.88 dollars at which the share closed on Monday. On Tuesday morning, the share fell by another 5 percent.

The company was formed in April 2022 through a merger that aimed to make two traditional media companies, Discovery and WarnerMedia, competitive in the fierce streaming battle with Netflix and Disney.

However, WBD has struggled to convince Wall Street, leading to a reduction in valuation and pressure on management to take action. The company will announce its quarterly results on Wednesday.

Since the merger, the company has focused on cost reductions and debt reduction, including several rounds of layoffs and the sale of assets like All3Media, the British production company behind Fleabag. Last month, CNN laid off about 100 employees or 3 percent of its workforce as part of a digital restructuring strategy.

Although WBD management wants to sell assets, the hurdle for selling CNN would be "very, very high" due to its strategic importance and tax implications, said a person familiar with the matter. This person added that it is unlikely an offer would be made that could address these concerns.

[Zaslav] has also made it very clear that he views CNN as a strategic and reputation-enhancing asset. It is one of the flagship networks that helps us on the affiliate side," said the person, referring to the payments that cable companies make to television networks for broadcasting their programs.

In total, 'WBD should be worth significantly more. It shouldn't take two to three more years for us to get there,' the person said. 'But the market is difficult at the moment, and many things need to go well.'