Warner Bros. Discovery’s stock plummets to new low amid concerns the media giant could lose its NBA rights

CNN Business05-01

Editor’s Note: A version of this article first appeared in the “Reliable Sources” newsletter. Sign up for the daily digest chronicling the evolving media landscape here. New York CNN — ...

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Discovery’s stock plummets to new low amid concerns the media giant could lose its NBA rights","media":"CNN Business","content":"<div>\n<p>Editor’s Note: A version of this article first appeared in the “Reliable Sources” newsletter. Sign up for the daily digest chronicling the evolving media landscape here.\n\n\n\nNew York\nCNN\n         — \n  ...</p>\n\n<a href=\"https://edition.cnn.com/2024/05/01/media/warner-bros-discovery-could-lose-nba-rights/index.html\">Source Link</a>\n\n</div>\n","source":"cnn_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Warner Bros. 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Discovery’s stock plummets to new low amid concerns the media giant could lose its NBA rights\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-05-01 19:12 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://edition.cnn.com/2024/05/01/media/warner-bros-discovery-could-lose-nba-rights/index.html><strong>CNN Business</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Editor’s Note: A version of this article first appeared in the “Reliable Sources” newsletter. Sign up for the daily digest chronicling the evolving media landscape here.\n\n\n\nNew York\nCNN\n         — \n  ...</p>\n\n<a href=\"https://edition.cnn.com/2024/05/01/media/warner-bros-discovery-could-lose-nba-rights/index.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU1046421795.USD","symbol_name":"富达环球科技A-ACC","start_time":0,"source_url":"https://edition.cnn.com/2024/05/01/media/warner-bros-discovery-could-lose-nba-rights/index.html","article_id":"2432088522","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2432088522","pubTimestamp":1714561928,"sourceInfo":{"source_id":"cnn_highlight","name":"CNN Business"},"weMediaInfo":null,"summary":"Editor’s Note:A version of this article first appeared in the “Reliable Sources” newsletter.Sign up for the daily digest chronicling the evolving media landscape here.David Zaslavfamously said in 2022 thatWarner Bros. Discoverydoesn’t “have to have theNBA.” It appearsWall Streetdisagrees.WBD’s already rock-bottom stock price plummeted nearly 10% on Tuesdayafter a reportinThe Wall Street Journalsignaled the media conglomerate could be in for an expensive battle to maintain its NBA broadcast rights, with shares ending Tuesday at $7.36. That figure represents an all-time low for WBD, the parent company ofCNN.Industry insiders have repeatedly underscored to me how important it is for the network and WBD to retain the NBA broadcast rights. “It’s a must have,” stressed a media executive to me again on Tuesday. WBD had an exclusive negotiating window with the NBA, but it expired earlier this month, allowing other companies, such as NBCU, to make bids.","collect":0,"end_time":0,"defaultTopTitle":"cnn.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU1046421795.USD":"富达环球科技A-ACC","SGXZ23171101.USD":"NIKKO AM SHENTON GLOBAL OPPORTUNITIES (USD) ACC","LU1548497426.USD":"安联环球人工智能AT Acc","BK4532":"文艺复兴科技持仓","BK4585":"ETF&股票定投概念","BK4108":"电影和娱乐","BK4566":"资本集团","BK4534":"瑞士信贷持仓","BK4587":"ChatGPT概念","BK4507":"流媒体概念","LU1720051108.HKD":"ALLIANZ GLOBAL ARTIFICIAL INTELLIGENCE \"AT\" (HKD) ACC","NFLX":"奈飞","LU1429558221.USD":"Natixis Loomis Sayles US Growth Equity RA USD","LU2357305700.SGD":"Allianz Global Artificial Intelligence ET H2-SGD","BK4524":"宅经济概念","IE00B19Z9505.USD":"美盛-美国大盘成长股A Acc","BK4588":"碎股","LU1435385759.SGD":"Natixis Loomis Sayles US Growth Equity RA SGD-H","BK4527":"明星科技股","LU0082616367.USD":"摩根大通美国科技A（dist）","LU0719512351.SGD":"JPMorgan Funds - US Technology A (acc) SGD","LU1823568750.SGD":"Fidelity Global Technology A-ACC SGD","LU1989764664.SGD":"CPR Invest - Global Disruptive Opportunities A2 Acc SGD-H","BK4551":"寇图资本持仓","SG9999004303.SGD":"Nikko AM Shenton Global Opportunities SGD","BK4581":"高盛持仓","BK4125":"广播","BK4548":"巴美列捷福持仓","WBD":"Warner Bros. Discovery","LU2326559502.SGD":"Natixis Loomis Sayles US Growth Equity P/A SGD-H","LU1720051017.SGD":"Allianz Global Artificial Intelligence AT Acc H2-SGD"},"translate_title":"由于担心媒体巨头华纳兄弟探索公司可能失去NBA转播权，该公司股价跌至新低","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"WBD":1,"NFLX":0.76},"content_text":"Editor’s Note: A version of this article first appeared in the “Reliable Sources” newsletter. Sign up for the daily digest chronicling the evolving media landscape here.\n\n\n\nNew York\nCNN\n         — \n    \n\n\n            David Zaslav famously said in 2022 that Warner Bros. Discovery doesn’t “have to have the NBA.” It appears Wall Street disagrees.\n    \n\n            WBD’s already rock-bottom stock price plummeted nearly 10% on Tuesday after a report in The Wall Street Journal signaled the media conglomerate could be in for an expensive battle to maintain its NBA broadcast rights, with shares ending Tuesday at $7.36. That figure represents an all-time low for WBD, the parent company of CNN.\n    \n\n            Industry insiders have repeatedly underscored to me how important it is for the network and WBD to retain the NBA broadcast rights. “It’s a must have,” stressed a media executive to me again on Tuesday. WBD had an exclusive negotiating window with the NBA, but it expired earlier this month, allowing other companies, such as NBCU, to make bids.\n    \n\n            The Journal report — authored by Joe Flint, Amol Sharma, and Isabella Simonetti — said that NBCUniversal “is prepared to pay an average of about $2.5 billion a year” to air a set of NBA games, effectively doubling the current fee paid by WBD. Under the proposal, NBCU would air some league games on its broadcast network, potentially in prime time, and on its Peacock streaming service. The bid threatens to eclipse WBD, which has aired NBA games on its cable network TNT, a longtime NBA partner and key component of the company’s business.\n    \n\n            TNT has built a programming slate around the NBA games, most notably the highly rated ”Inside the NBA” show. In fact, Charles Barkley just signed a new, 10-year deal in 2023 with WBD. Andrew Marchand, now a journalist at The Athletic, reported at the time for the New York Post that the deal over a 10-year period is worth “well in excess of $100 million and could approach $200 million.” In other words, WBD has made significant investments hinging on maintaining the rights to the games.\n    \n\n            While WBD maintains the rights to the NCAA March Madness tournament, as well as other sports such as the MLB, NHL and NASCAR, the NBA remains crucial to the media conglomerate. As The Journal pointed out, “Without the NBA, though, Warner could have a harder time charging distributors as much for carriage of its channels.”\n    \n\n\n\n\n\n\n\n\nNEW YORK, NEW YORK - APRIL 30: Tyrese Maxey #0 of the Philadelphia 76ers reacts in the fourth quarter against the New York Knicks  at Madison Square Garden on April 30, 2024 in New York City. The Philadelphia 76ers defeated the New York Knicks 112-106 in overtime. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this photograph, User is consenting to the terms and conditions of the Getty Images License Agreement. (Photo by Elsa/Getty Images)\n\nElsa/Getty Images\n\n\n\n\nRelated article\nTyrese Maxey stuns Madison Square Garden as Philadelphia 76ers beat New York Knicks in wild Game 5 finale\n\n\n\n            Moreover, WBD just struck a deal with Disney and Fox Corporation to launch a forthcoming sports super-streamer. Losing the rights to NBA games could throw aspects of that business partnership into question. That’s not to mention WBD’s flagship streaming service, Max, has been advertising live sports to consumers as a key differentiator from other platforms. Losing the NBA would be a big blow to that pitch.\n    \n\n            Spokespeople for both WBD and the NBA declined to comment.\n    \n\n            Of course, it’s possible that WBD will overtake NBCU’s bid, or at least secure some NBA games. I’m told that WBD continues to sit at the negotiating table and has been having productive conversations. But given how cost-conscious Zaslav and chief financial officer Gunnar Wiedenfels have been in their management of the company, the current state of play is surely not a welcome development, which is reflected in the company’s share price.\n    \n\n            A potential loss of the NBA rights could not come at a worse time for Zaslav, who has struggled to sell Wall Street on his vision for a one-stop, one-size-fits-all streamer to go toe-to-toe with Netflix. Since WBD first began trading on Wall Street in April 2022, the stock has lost roughly 70% of its value. While investors have been patient, shares plunging to a new all-time low on Tuesday can’t help.\n    \n\n            The optics are anything but great, given that executives such as Zaslav and Wiedenfels have been handsomely paid as investors have watched their assets evaporate over the years. According to financial disclosures made public earlier this month, Zaslav’s 2023 compensation package grew to nearly $50 million, while Wiedenfels’ topped $17 million.\n    \n\n            While Zaslav is grappling with an enormous set of challenges, he is not alone. Legacy media companies are struggling immensely to keep their heads above water as consumers cut the cord in favor of alluring streaming options, a revolution brought on by Netflix that has brought once towering giants to their knees.\n    \n\n            Disney boss Bob Iger has openly spoken at length about the innumerable challenges he is navigating, and Paramount Global is engaged in merger talks with David Ellison’s Skydance Media as it fights to find a path forward for survival.\n    \n\n            All of which makes sports rights even more crucial. Live sports are one of the final legs holding up the traditional cable television package, which has for years proved to be lucrative for companies such as WBD. As legacy media companies search for audiences and try to entice the public to sign up for their streaming platforms, securing these sports rights is as important as ever. And for Zaslav, whose company is struggling on Wall Street, the battle could not come at a more inopportune time.\n    \n\n            As a second media executive told me Tuesday, “The NBA becomes even more of a must-have when other aspects of the business are not working.”","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2432088522"}