Warner Bros. Discovery's (NASDAQ:WBD) share price jumped by more than 10% after pulling off a surprising profit in Q3 2024, reporting $135 million in net income as its streaming platform, Max, took the spotlight. With a whopping 7.2 million new subscribers added this quarter, Max's adjusted EBITDA surged to $289 million, far exceeding Wall Street's forecasts. And while traditional segments like theatrical releases and cable networks showed some softnessrevenue from big releases like Beetlejuice Beetlejuice didn't quite match last year's Barbiethe streaming momentum is clear. Overall, adjusted EBITDA came in at $2.4 billion.

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CEO David Zaslav isn't just focusing on subscriber growth; he's looking to keep the company's finances rock-solid. Warner Bros. Discovery ended the quarter with $3.5 billion in cash reserves and continued its debt reduction strategy, paying off $0.9 billion this quarter. Though there's no dividend announcement yet, Zaslav's strategic playbook and Warner Bros. Discovery's cash flow of $632 millioneven with higher content investmentspoint to potential future shareholder rewards. And if that's not enough, the company still has a hefty $6 billion undrawn credit line in reserve, underscoring its liquidity and resilience in a volatile market.

Looking forward, Zaslav hinted that a potential shift in the U.S. administration might open doors for long-awaited media consolidations, something he's keen to pursue. With a more merger-friendly regulatory landscape on the horizon, Warner Bros. Discovery could soon be on the hunt for strategic acquisitions, strengthening its position in a rapidly consolidating industry. So, while Max's growth shines today, keep an eye outthis media giant's next move could be just as game-changing for long-term investors looking for stability, growth, and potentially even income in future quarters.

This article first appeared on GuruFocus.