Diageo (NYSE:DEO) is shaking things up. The spirits giant is reportedly weighing a spinoff or sale of Guinnessits crown jewel in beerwhile also reassessing its 34% stake in Moet Hennessy, the drinks arm of LVMH. If Guinness hits the auction block, it could fetch north of $10 billion, an eye-popping number for a brand that's been delivering double-digit growth since 2021. Meanwhile, spirits sales, including Johnnie Walker, have been losing steam post-pandemic, raising questions about Diageo's long-term strategy. Investors cheered the news, sending shares up 6.8% in Friday's afternoonthe biggest one-day jump in four yearsbut some analysts are scratching their heads. Why offload one of your strongest assets when the broader spirits market is struggling?

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Diageo is under pressure. CEO Debra Crew, alongside newly appointed CFO Nik Jhangiani, is in cleanup mode after missteps in key markets, including an inventory pileup in Latin America and softer demand in China and the U.S. Debt is another headache$21.5 billion and counting. Crew has already put underperforming brands like Ciroc vodka on the chopping block, and now, the Moet Hennessy stake is in play. The big question: Is this a strategic overhaul or just a desperate attempt to plug holes?

Investors will get more clarity when Diageo reports earnings next month. Analysts are expecting a reset on its ambitious 5%-7% mid-term growth target, which no longer looks realistic in today's market. Some major players, including fund manager Terry Smith, have already bailed on the stock, citing concerns over leadership and shifting consumer habitsthink weight-loss drugs cutting alcohol consumption. Still, Diageo isn't down for the count. It has a powerful brand lineup, and if Crew and Jhangiani can execute, there's a path forward. But for now, investors are left wondering: Is Diageo doubling down on spirits, or is this the start of a bigger transformation?