Warner Bros. Discovery (NASDAQ: WBD) stock plummeted around 10% in intraday trading to a 52-week low on Tuesday following reports from The Wall Street Journal suggesting that Comcast’s NBCUniversal (CMCSA) is eyeing an NBA broadcasting rights bid, possibly moving the league from Warner Bros.’s TNT network.
According to The Wall Street Journal, NBC is on the cusp of finalizing a landmark agreement with the National Basketball Association (NBA), potentially shelling out a staggering $2.5 billion annually to broadcast a comprehensive package of NBA games. This figure represents a substantial increase from the current $1.2 billion annual fee paid by Warner Bros. Discovery for similar rights.
The proposed agreement encompasses a wide array of NBA content, spanning both playoff and regular season games, to be aired on the NBC network and its flagship streaming platform, Peacock.
According to sources, Warner Bros. (WBD), the current rights holder, failed to secure a new deal with the league, as its exclusive negotiation period lapsed last week. The NBA’s current rights deal will expire at the end of next season.
Meanwhile, Disney (NYSE: DIS), another major broadcast partner of the NBA, has reportedly agreed to a substantial increase in their payment, raising their annual contribution from $1.5 billion to $2.6 billion to renew their broadcasting deal.
Moreover, Amazon (NASDAQ: AMZN) has emerged as a formidable contender in the race for streaming rights, with negotiations underway for a lucrative package through its Prime Video service.
Warner Bros. Discovery (NASDAQ: WBD) Stock Price Action
WBD stock plunged 9.69% to close at $7.36 on Tuesday. Its value has dropped by 12.80% this week. Trading activity has witnessed 82,911,721 (82.91 million) shares changing hands, well above the average daily volume of 28.71 million.
