Warner Bros. Discovery (WBD) will not proceed with spinning off its global networks into a new entity, Discovery Global, if it completes a merger with Paramount, a WBD spokesperson confirmed. This shift follows Netflix’s withdrawal from bidding on WBD’s streaming and studios division, leaving Paramount’s acquisition as the frontrunner. Under the deal, linear cable networks such as TNT Sports—which includes TNT, TBS, and truTV—would come under the same corporate roof as CBS Sports, rather than operating independently as initially planned.
WBD CFO Gunnar Wiedenfels, who would have led Discovery Global, reaffirmed the company’s continued interest in sports rights despite tightening financial discipline.
“You will always see us involved in every process that’s ongoing, and we will know what the value is, and we’ll continue to be great partners. We’re very happy with the partnerships that we have, and there will certainly be continued appetite as we go forward, even after separation into Discovery Global,”
he stated.
The TNT Sports networks might still operate separately if the Paramount acquisition faces regulatory hurdles. Despite losing domestic NBA rights in 2024, TNT Sports has acquired new properties, including French Open tennis, Big 12 football, NASCAR events, and continues to broadcast MLB and NHL games. However, the absence of NBA rights dampened advertising revenue growth by 4% on a constant currency basis. For the quarter, WBD reported revenues of $9.46 billion, down 6% year-over-year, and adjusted EBITDA declined 19% to $2.2 billion.
Paramount Poised for Ongoing NFL Collaboration Amid Media Rights Discussions
Paramount’s president, Jeff Shell, expressed optimism about the company’s enduring relationship with the NFL even as the league explores early renegotiation of its media rights contracts. In the company’s fourth-quarter earnings call held before new developments at WBD unfolded, Shell remarked that both parties “feel very good” about their partnership, with no notable cause for concern. He said,
“We will be in business with the NFL for a long time.”
The NFL holds an equity stake in Paramount through the Skydance Sports joint venture, a smaller holding compared to the league’s recent nearly 10% ownership in ESPN. NFL executive Hans Schroeder has previously emphasized maintaining “an arm’s length” approach in negotiations involving partners where the league has ownership. Concerning the ongoing rights discussions, Shell noted,
“We have properly accounted for what we expect to be whatever impact of that negotiation in our internal forecast going forward.”
Paramount has positioned the Warner Bros. Discovery acquisition as a strategic accelerator aiming to advance its business goals. The company has enhanced its bid to $31 per share, increased the regulatory termination fee to $7 billion, and moved up the timeline for an associated quarterly ticking fee. WBD’s board endorsed Paramount’s offer as a “company superior proposal,” which Netflix chose not to match.
For the fiscal fourth quarter, Paramount generated $8.15 billion in revenue, a 2% increase year-over-year, and posted $612 million in adjusted operating income before depreciation and amortization (OIBDA), rising 7.5% annually. Despite a $95 million loss following the Skydance merger completion last summer, the company affirmed it is
“firmly on track to deliver at least $3 billion in efficiencies through 2027.”
Atlanta Braves Assert Local Broadcast Authority through New BravesVision Platform
Terry McGuirk, chairman, president, and CEO of Atlanta Braves Holdings, emphasized the team’s confidence in independently managing their local broadcast content following the departure of Main Street Sports Group, their previous broadcast partner. Speaking during an earnings call, McGuirk said the Braves are
“confident in our ability to produce, distribute, and deliver our games and additional Braves content in a way that is compelling and serves our fans very well.”
Starting this season, the Braves will oversee their own local telecasts through the newly launched BravesVision platform.
While the Braves and eight other teams breaking from Main Street accept the loss of a rights fee, McGuirk highlighted that the Braves’ substantial television territory grants them an advantage for optimizing financial outcomes. Previously, the Braves and Major League Baseball had opposed Diamond Sports Group’s reorganization plan during the RSN operator’s Chapter 11 bankruptcy proceedings, citing concerns over the operator’s financial viability.
“Based on the current inadequate record, the Braves and MLB have grave concerns that, if the Plan is confirmed, there is a substantial likelihood that the Debtors will find themselves once again in financial distress and/or bankruptcy court in the near future,”
read their objection, which was later withdrawn. Diamond emerged from bankruptcy last January, rebranded as Main Street, but has since faced possible liquidation and issued WARN notices to employees.
Derek Schiller, the Braves’ president and CEO, described the BravesVision launch as “a defining moment” for the franchise and its supporters. Fans can subscribe to stream games on the Braves.TV platform, with distribution details pending finalized agreements. According to Tom Friend of Sports Business Journal, the Braves are actively negotiating with various service providers including Comcast, YouTube TV, and Hulu.
Recent Developments in Streaming, Sports Media, and Sponsorships
Xfinity TV is enabling eligible customers to access ESPN Unlimited via account authentication, which allows streaming of ESPN’s linear networks, exclusive events, and a discounted annual MLB.TV subscription for new customers. Subscribers receive email instructions and can link existing accounts on Xfinity’s subscription portal.
Fox Sports introduced a “Sports AI” feature on its app, permitting users to receive personalized updates, multiple commentary options, and interact directly with the interface. This AI incorporates the voice and content style of Colin Cowherd, host of “The Herd” on FS1 and Fox Sports Radio, leveraging Fox Sports’ extensive content archives and live sports data. Cowherd follows a growing trend of sports personalities engaging with AI-driven media, akin to NBC’s use of AI-generated voices for Al Michaels during the Paris Olympics and Jim Fagan for NBA coverage. ESPN has similarly experimented with AI replications of anchors Gary Striewski, Hannah Storm, and Christine Williamson for customized SportsCenter experiences.
ESPN and the Horizon League extended their media rights agreement, continuing ESPN’s role as the broadcaster of the men’s and women’s basketball championship games. This multiyear deal preserves a 38-year relationship and includes rights for men’s basketball semifinals and six regular-season games. ESPN also renewed a three-year media rights deal for the American Cornhole League, committing to providing at least 30 hours of original programming, according to Austin Karp of Sports Business Journal.
Procter & Gamble marked its return as a sponsor of USA Gymnastics through 2028, after withdrawing support in 2017 amid publicized abuse scandals within the organization. As reported by Terry Lefton of Sports Business Journal, P&G is the first major company to renew sponsorship, securing significant branding exposure during televised USA Gymnastics events.
