Nexstar Nears Deal To Snap Majority Control In CW Network: WSJ

  • Nexstar Media Group, Inc NXST is on the verge of acquiring majority control of the CW Network from Warner Bros. Discovery, Inc WBD and Paramount Global PARAthe Wall Street Journal reports.
  • The leading owner of local television stations would acquire 75% of the CW, a broadcast network aimed primarily at teens and young adults, with Paramount and Warner Bros. Discovery each retaining 12.5% stakes.
  • Nexstar looks to assume a significant portion of the network’s current losses, which could exceed $100 million.
  • Also Read: Nexstar Media Tops Q1 Backed By Advertising, Distribution Revenue Growth
  • CBS, the broadcast network of Paramount and Warner Bros., will likely continue to create content for the CW.
  • Meanwhile, Nexstar looks to acquire shows from other producers as well. 
  • Paramount and Warner Bros. Discovery will likely retain several hundred million dollars in content-licensing revenue from pre-existing deals, including a significant pact with Netflix Inc NFLX.
  • The CW was born from the 2006 merger of the struggling Warner Bros.’ WB and CBS’s UPN networks. 
  • Although the CW rarely made a profit, it was very successful for its parent companies, primarily due to the Netflix licensing agreement. 
  • In 2019, the CW’s parent companies terminated the Netflix agreement to avail the CW content for their streaming services, Paramount+ and HBO Max, and cut costs.
  • Paramount Global is focused on its streaming service and revamping its Paramount movie studio, while Warner Bros. Discovery, under new ownership, is looking to cut costs and prioritize businesses.
  • Price Actions: PARA shares traded lower by 1.12% at $24.80 in the premarket on the last check Thursday. WBD shares traded lower by 1.52% at $12.97.

Posted In: BriefsM&ANewsTechMedia

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.