Warner Bros. Discovery considers matching Amazon offer for NBA games rights

From CNBC: 2024-05-23 13:52:31

Jalen Brunson #11 of the New York Knicks played in the Round 2 Game 1 of the 2024 NBA Playoffs against the Indiana Pacers at Madison Square Garden in New York City on May 6, 2024. Warner Bros. Discovery may match offers for NBA media rights, focusing on Amazon over NBCUniversal games.

Warner Bros. Discovery is engaged in negotiations with the NBA for media rights, considering matching an offer for a package of NBA games. The media company is focusing on a potential deal with Amazon over Comcast’s NBCUniversal. Warner Bros. Discovery holds current NBA rights through Turner Sports.

The NBA is in the process of finalizing media agreements with Disney, NBCUniversal, and Amazon for various game packages. Warner Bros. Discovery could exercise matching rights for the games it currently licenses. Turner Sports, the division under Warner Bros. Discovery, has been carrying NBA games for nearly 40 years.

Amazon has reportedly offered $1.8 billion annually for a selection of NBA games, while NBCUniversal has bid around $2.5 billion per year. The league has frameworks in place for both deals, but formal paperwork has not been signed. Warner Bros. Discovery would have five days to match these offers once signed. They have not yet communicated their intentions to the league.

Warner Bros. Discovery may seek a settlement or a smaller game package from the NBA as a potential outcome if they do not match the current bids. The media company is attracted to the potential Amazon package, which includes All-Star and conference finals games. Warner Bros. Discovery is managing debt and is exploring streaming opportunities through Max, its flagship streaming service.

David Zaslav, CEO of Warner Bros. Discovery, views NBCUniversal as a direct competitor in terms of legacy media companies. Zaslav has indicated his willingness to let the NBA go if the cost is too high. His focus on Amazon may be strategic, aiming for a settlement with the league. Warner Bros. Discovery is evaluating priorities for future sports rights deals.



Read more at CNBC: Warner Bros. Discovery considers matching NBA package slated for Amazon