WBD: Can It Thrive Post-Cable?
- Discovery's (WBD) restructuring plan received a major boost Monday as bondholders overwhelmingly approved the company's proposal to split into two publicly traded entities.
- the approval eliminates significant hurdles that could have derailed the media conglomerate's enterprising restructuring efforts.
- Up to 99% of some bondholder groups voted in favor of the plan, which removes debt covenant restrictions that could have blocked the restructuring.
Bondholders approved Warner Bros. Finding’s (WBD) restructuring plan, a pivotal move for the media giant. This approval allows WBD to split into two separate entertainment companies, possibly reshaping its future. The move is crucial as WBD seeks to separate its profitable studio and streaming services from its cable networks, with the former seeking to compete with streaming giants like Netflix and Disney. WBD’s shares jumped nearly 5% following the announcement, a promising sign amidst broader market challenges. credit rating agencies have downgraded WBD to junk status, adding pressure. The company is facing notable debt issues, with the legacy cable business carrying the majority. for breaking news and financial insights, turn to News Directory 3. Discover what’s next for Warner Bros. Discovery and its ability to thrive in the post-cable era.
Bondholders Approve Warner Bros. discovery Restructuring Plan
Updated June 16, 2025
Warner Bros. Discovery’s (WBD) restructuring plan received a major boost Monday as bondholders overwhelmingly approved the company’s proposal to split into two publicly traded entities. Shares of Warner Bros. Discovery (NASDAQ: WBD) jumped 4.89%, closing at $10.52.
the approval eliminates significant hurdles that could have derailed the media conglomerate’s enterprising restructuring efforts. The move is seen as critical for WBD as it seeks to separate its profitable studios and HBO Max streaming service from its cable networks business, which faces declining revenue.
Up to 99% of some bondholder groups voted in favor of the plan, which removes debt covenant restrictions that could have blocked the restructuring. Credit investors also supported the company’s plan to buy back nearly half of its $37 billion debt, a result of the 2022 WarnerMedia and Discovery merger.
Under the complex deal, the legacy cable business and its bondholders will shoulder the majority of the company’s debt. The streaming and studio operations will emerge with significantly less financial leverage. The strategic separation aims to give the entertainment divisions greater flexibility to compete with streaming giants like Netflix (NASDAQ:) and Disney (NYSE:).
Some bondholders have expressed concern about being left with unsecured bonds tied to the declining cable television market, potentially leaving them without collateral protection if the business falters.
WBD shares opened at $10.14 and reached an intraday high above $10.60. Trading volume exceeded 15.5 million shares, compared to its average of 44.2 million. The company’s market capitalization is about $26.04 billion,with a price-to-sales ratio of 0.64.
Despite Monday’s gains, Warner Bros. Discovery stock faces pressure from broader market and industry headwinds. Year-to-date, shares have declined 0.43%, but they have gained 45.37% over the past 12 months,outperforming the S&P 500’s 11.16% return during the same period.
Fitch and Moody’s recently downgraded the company to junk status, joining S&P Global Ratings in citing concerns about the challenges facing traditional cable networks. The downgrades triggered forced selling by investment-grade funds,adding pressure to the company’s bond prices.
What’s next
The company will now move forward with its plan to separate the two entities, a process expected to take several months. Investors will be watching closely to see how the new structure impacts the company’s ability to compete in the rapidly evolving media landscape.