Seismic contract negotiation between NBA and TV partners leaves Warner Bros. Discovery without NBA games
- Warner Bros. could lose $600 million in profit each year if it loses the NBA
- NBC secured a version of Turner’s NBA broadcast package for $2.5 billion
- Warner Bros. Discovery’s stock is down 39% over the past 12 months
Warner Bros. Discovery is facing a potential loss of $600 million in profit each year if it loses the NBA TV deal to NBC. The NBA has reportedly agreed to an 11-year, $76 billion TV deal with Disney, NBC, and Amazon that will begin in 2025. Turner Entertainment, owned by Warner Bros. Discovery, will no longer be showing any NBA games after the 2024-25 season. NBC secured a version of Turner’s NBA broadcast package for $2.5 billion, leaving Turner and TNT without NBA games for the first time since 1988. This deal could have a significant impact on Warner Bros. Discovery’s financials, as the revenue from selling advertising during NBA games will be lost, and the fees charged to cable and satellite companies may decrease without the NBA programming. Warner Bros. Discovery’s stock is already down 39% over the past 12 months. The company may try to license other live sports content to negotiate with distributors on better terms. TNT will still broadcast NBA games for the 2024-25 season, but Warner Bros. Discovery will likely scramble to license other sports content to fill the void left by the NBA.·
Factuality Level: 2
Factuality Justification: The article primarily focuses on the business aspects of the NBA TV deal negotiations and the impact on Warner Bros. Discovery. It contains relevant information but lacks depth and context, with some unnecessary details and tangential information included. The article does not provide misleading information but lacks in-depth analysis and objectivity.·
Noise Level: 3
Noise Justification: The article provides detailed information about the NBA’s TV deal negotiations and the potential impact on Warner Bros. Discovery. It includes quotes from analysts, financial data, and insights into the future strategies of the companies involved. However, it contains some repetitive information and unnecessary details about individual contracts and past programming on TNT, which could be considered noise.·
Public Companies: Warner Bros. Discovery (WBD), Disney (DIS), Amazon (AMZN), Comcast (CMCSA), Charter Communications (CHTR), Verizon (VZ)
Key People: Peter Supino (media and entertainment analyst at Wolfe Research), Andrew Marchand (New York Post sports reporter), Charles Barkley (host of TNT’s “Inside the NBA”), David Zaslav (CEO of Warner Bros. Discovery), Dan Patrick (sports commentator)
Financial Relevance: Yes
Financial Markets Impacted: The financial markets impacted by this article are the media and entertainment industry, specifically Warner Bros. Discovery and its stock performance, as well as the potential impact on cable and satellite companies like Charter Communications and Verizon in their negotiations with Turner for distribution fees.
Financial Rating Justification: The article discusses the financial implications of the NBA’s new TV deal with Disney, NBC, and Amazon, and how it affects Warner Bros. Discovery’s Turner Entertainment. It also mentions the potential impact on Turner’s revenue from advertising and distribution fees, which are relevant to financial markets and companies.·
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: ·
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