Warner Bros. Discovery paid off some of its outstanding debt, causing stock prices to rise for the second day in a row. Warner Bros. and Discovery joined forces last year, combining to form Warner Bros. Discovery. In the first quarter of this year, the company reported a whopping $49.5 billion in debt. Warner Bros. Discovery had lost about $1.07 billion in only three months. During the same time span, the company earned $10.7 billion in revenue.
The company released a public filing earlier this week stating Warner Bros. Discovery has paid off “$750 million of borrowings under its multicurrency revolving credit agreement and $800 million of borrowings outstanding under its term loan prior to the dude date of April 2025.” Warner Bros. Discovery also revealed the commencement of a cash tender offer for up to $500 million towards floating rate notes with a high-interest rate.
Overall, Warner Bros. Discovery reduced its debt by $2.05 billion during the second quarter of this year.
Sources report Warner Bros. Discovery stock rose 8 percent Wednesday, followed by another 7 percent rise on Thursday. Not bad for a company facing a number of challenges and changes during a less than-fruitful year.
This debt inspired Warner Bros. Discovery to undergo massive cost-cutting initiatives, including laying off staffers throughout its sports division and cable networks. The company is also altering its approach to original content investments after rolling out spending reductions and refocusing its budgeting tactics.
CEO David Zaslav is confident that the company can rebound by focusing more of its budget on its streaming services. One of the ways Warner Bros. Discovery is going about this is through the newly rebranded Max, which has already brought on an additional 1.6 million new subscribers during the first quarter. The newbies bring Max’s total subscriber number to 97.6 million.