Core Viewpoint - Shareholders of Warner Bros. Discovery (WBD) have rejected CEO David Zaslav's proposed pay package, reflecting dissatisfaction with the company's performance amid falling revenue and stock decline [2][4]. Company Performance - WBD has experienced a 60% decline in stock value over the past three years, with shares currently trading below $10, down from $24 at the company's formation in April 2022 [2][3]. - In the first quarter, WBD reported a loss of $453 million, with revenue falling 10% year-over-year, although it generated $2.1 billion in adjusted EBITDA [7]. - The company's debt has been reduced by nearly $20 billion since the merger of WarnerMedia and Discovery, but its revenue continues to decline, leading to a junk status downgrade by S&P Global [8][9]. Strategic Challenges - WBD's efforts to compete with streaming giants like Netflix and Disney have not met expectations, with the rebranding of its streaming service from Max back to HBO Max seen as a strategic retreat [9][10]. - Despite adding 22 million streaming customers in the past year, the overall performance has not positioned WBD as a strong competitor in the streaming market [10]. Potential Structural Changes - Analysts suggest that splitting WBD's assets could unlock value, with a potential division into Global Linear Networks and Streaming & Studios [11][12]. - There is a growing belief among investors that a spinoff could enhance the attractiveness of WBD's growth assets, particularly its streaming business [12][13].