Warner Bros. Discovery (WBD) has finally reached a settlement with the National Basketball Association (NBA) and has concluded its quest to own a package of NBA games in the U.S. for the 2025-26 season and beyond.
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Earlier this year, the media and entertainment company sued the NBA, alleging that the league had not honored its matching rights for a coveted package of live games. A matching right, also known as a right of first refusal or right of first offer, which allows one party to match any offer made to the other party for a player or negotiated issue.
Ultimately, the NBA chose Disney (DIS), Comcast’s (CMCSA) NBCUniversal, and Amazon (AMZN) Prime Video as its U.S. distributors of live games for an 11-year deal valued at approximately $77 billion, which also includes WNBA content.
WBD Retains Global NBA Content Rights
As part of the settlement, Warner Bros. Discovery will retain some ties to the NBA through content production, licensing, and digital partnerships. However, the deal marks the end of Turner Sports’ 40-year tenure as a live-game carrier for the NBA in the U.S. after this season. The league decided to move away from Warner Bros. Discovery as it wanted to reach younger audiences, as these audiences are moving away from cable TV to streaming platforms.
According to the terms of this deal, Warner Bros. Discovery’s TNT Sports will gain access to NBA highlights for the Bleacher Report digital news site and its social media platform, House of Highlights for the next 11 years. The company can also license and create new NBA content across its media platforms. Additionally, Warner Bros. Discovery secured live game rights for markets in the Nordic region, Poland, and Latin America, excluding Brazil and Mexico.
A separate agreement allows WBD’s TNT’s popular “Inside the NBA” to appear on Disney’s ESPN and ABC for high-profile games, while ESPN’s “Countdown” will continue for other broadcasts. Furthermore, ESPN has granted TNT the rights to televise select Big 12 football and basketball games starting in 2025, enhancing the Big 12’s exposure on linear TV platforms.
This settlement will ensure WBD will generate guaranteed revenue from the NBA for years.
Is WBD a Good Buy?
Analysts remain cautiously optimistic about WBD stock, with a Moderate Buy consensus rating based on 10 Buys, six Holds, and one Sell. Over the past year, WBD has declined by more than 10%, and the average WBD price target of $12.50 implies an upside potential of 30.8% from current levels.
