Warner Bros. Discovery finally bailing out of regional sports - report
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Warner Bros. Discovery (NASDAQ:WBD) is reportedly set to abandon the regional sports network business, leaving a faltering space going through a heavy transition.
The company has sent letters to sports leagues and teams saying that it's divesting its interest in four regional networks, inherited from the WarnerMedia merger: Three AT&T SportsNet-branded channels in Denver, Houston and Pittsburgh, and a minority stake in Root Sports in Seattle, Sports Business Journal reported.
Through those four vectors, WBD has rights deals with 10 teams across three professional leagues: The Houston Astros, Seattle Mariners, Pittsbugh Pirates and Colorado Rockies of Major League Baseball; The Portland Trail Blazers, Utah Jazz and Houston Rockets of the NBA; and the Seattle Kraken, Pittsburgh Penguins and Vegas Golden Knights of the National Hockey League.
WBD has told those teams they have until March 31 to reach an agreement to reclaim their rights, and otherwise, the channels will move forward with a Chapter 7 liquidation, according to SBJ's report.
It's not the only RSN business in trouble. Sinclair Broadcast Group's (SBGI) Diamond Sports Group, which operates as Bally Sports, is preparing to file for bankruptcy.
Meanwhile, WBD is looking to extract itself from regional rights to three NBA teams even as it pursues extending its national coverage package against a number of new rivals. That pursuit is fraught as WBD CEO David Zaslav has said he "likes" the league but "we don't have to have the NBA." And NBC Sports (CMCSA) is reportedly looking to make a strong push to reclaim those rights.