Warner Bros. Discovery 'hopeful' for NBA deal

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May 9, 2024 at 5:30 p.m.

Warner Bros. Discovery (WBD) is reportedly at risk of losing NBA media rights to competitor NBCUniversal. Yahoo Finance's Alexandra Canal reports more on the story and what it could mean for Warner Bros. Discovery's future.

In the company's earnings call, CEO David Zaslav said, "We've enjoyed a strong partnership with the NBA for almost four decades. We're in continuing conversations with them now, and we're hopeful that we'll be able to reach an agreement that makes sense for both sides."

NBCUniversal is reportedly willing to offer more than double what Warner Bros. Discovery currently pays for the rights.

Zaslav added that the company is able to match third-party offers before the NBA enters into any agreements and is prepared for the potential outcomes that could result in the process.

Warner Bros. Discovery is currently facing a decline in its linear networks, with advertising revenue falling 11% year-over-year in the quarter. The company could face detrimental outcomes if NBC outbids it for NBA rights.

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This post was written by Melanie Riehl

Video Transcript

Warner Brothers Discovery said Thursday it is hopeful for a deal with the NBA.

After Wall Street Journal reports said the company is at risk of losing media rights for the league to competitor NBC Universal Yahoo Finance's very own.

Alexander Canal is here with more.

Yes.

And this was a big question mark for investors heading into this earnings report, War Brother Discovery, Ceo David ZZ off.

He didn't give too many details about this but at the end of his prepared remarks, he did mention the NBA.

He that we've enjoyed a strong partnership with the NBA for almost four decades.

We're in continuing conversations with them.

Now we're hopeful that will be able to reach an agreement that makes sense for both sides.

He did say that they are able to match their party offers before the NBA enters into any agreements.

And he added that the company is prepared for the variety, a variety of potential outcomes that could see here.

But he would not elaborate on where current talks stand today.

And we've been talking about how important the NBA is to Warner Brothers Discovery, especially when you look at their linear networks, business network advertising revenue falling 11% year over year in the quarter.

So if you lose the NBA, you lose that bargaining chip.

And then you also have to remember some of their upcoming announcements.

They have that joint venture with Disney and Fox at that sport streaming joint venture that's going to debut this fall.

They lose the NBA.

What are they really bringing to that table as well?

So few question marks going on as we think about where the future of the NBA lies, where the future of Warner Brothers Discovery lies.

But it's clear that this league is seeking a very high deal.

Comcast is reportedly willing to offer more than double what Warner Brothers Discovery currently pays and they just might not be able to afford it.

So a lot of questions and analysts certainly are looking at any developments here that we can get a thanks for staying on top of it for us.

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