Warner Bros. Discovery said Thursday it would separate its declining cable TV business from the growing streaming and studio operations, laying the groundwork for a potential sale or spinoff of its traditional TV business as cord-cutting picks up pace.

Shares rose about 3% in premarket trading after the company said the new corporate structure will "increase optionality to pursue further value creation opportunities for both divisions." It expects to complete the rollout of the new structure by mid-2025.

Media companies are considering options for their cable TV businesses as a largescale shift by consumers toward streaming has slammed growth in traditional TV, which has long been the industry's cash cow.

Comcast last month unveiled plans to split most of its NBCUniversal cable networks into a new public company as it looks to unchain its faster-growing studio and theme parks business from the declining traditional TV.

Comedy Central and Nickelodeon owner Paramount Global had also earlier this year also agreed to merge with streaming-era upstart Skydance Media.