Jim Cramer Discusses How Warner Bros. Discovery Proved Doubters Wrong

Warner Bros. Discovery, Inc. (NASDAQ:WBD) is one of the stocks Jim Cramer recently commented on. During the episode, Cramer noted that he has always been a “believer in CEO David Zaslav,” as he stated:

“Third, let’s talk Warner Brothers Discovery. I’ve always been a believer in CEO David Zaslav… When he got handed the Warner Brothers portfolio from AT&T loaded with debt, he did his best to get that pile of debt down while cutting costs, creating some very good lasting properties. He turned it into the number one studio for television and movies while refining HBO into a very important streaming product, maybe second only to Netflix itself. He knew Warner Brothers Discovery couldn’t rally with all that debt, but he also knew that if he could solve the cash flow… which he very quickly did, then a stock that was trading at 10, then 9, then 8 would be a triple once the market came to its senses and the acquirers came calling.

Well, now, the acquirers are here, and it looks like what the media originally called a preposterous price was too low. I have no idea how this bidding war between Paramount and Netflix will take shape…. These kinds of properties don’t come up for sale very often. Here’s what I do know. Zaslav told anyone who listened that this could happen, that this would happen, that this was something preordained and definitive. I was ridiculed, of course, for believing Warner Brothers could get such a high price tag. But I believed in this man, the way I believe in Tim Cook and Jensen Huang.”

Warner Bros. Discovery, Inc. (NASDAQ:WBD) is a media and entertainment company that creates and distributes movies, TV shows, and streaming content.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.