Warner Bros Discovery has scored a crucial win in its efforts to stabilize finances and reshape its business. According to Bloomberg News, bondholders have approved a sweeping plan that enables the company to buy back nearly US$ 14 billion in bonds and amend the terms of its remaining debt, giving it greater flexibility to manage future borrowing and asset sales.
The debt restructuring is central to Warner Bros’ strategy of splitting into two entities one dedicated to streaming and film studios, including HBO, and the other focused on legacy cable networks such as CNN and Turner. Bloomberg noted that this approval marks a turning point for Chief Executive David Zaslav, who has been under pressure to ease the company’s debt burden while steering it through a shifting media landscape.
The Financial Times added that bondholders accepted concessions as part of the deal: while some debt was repurchased at a premium, others agreed to revised terms that relax restrictions on future borrowing. This compromise secures Warner Bros more breathing room to execute its corporate separation by 2026.
Industry observers say the restructuring could serve as a model for other major entertainment companies grappling with the challenges of declining cable revenues and rising costs in streaming. For Warner Bros, the agreement provides both immediate relief and a stronger foundation for the ambitious split ahead.
