NBCUniversal's NBA Bid Sends Warner Bros. Discovery Shares Plummeting to Record Low

By John Lopez

Apr 30 2024, 19:06 PM EDT

Warner Bros. Discovery's shares have recently experienced a significant downturn. They hit an all-time low, plummeting by 10% to $7.36. This decline followed reports of NBCUniversal's bid to replace Warner Bros. Discovery as one of the NBA's broadcast partners.

NBCUniversal Bids $2.5 Billion for NBA Broadcast Rights

According to the Sports Business Journal, NBCUniversal offered approximately $2.5 billion annually for the rights to broadcast NBA games, doubling Warner Bros. Discovery's current payment of $1.2 billion.

This offer came after the expiration of exclusive talks between the NBA and Warner Bros. Discovery, with TNT, a Warner Bros. Discovery affiliate, unable to reach a new agreement with the league.

Comcast's NBCUniversal is eager to regain NBA broadcasting rights, which it lost to Disney 22 years ago. CNBC reported that NBCUniversal is offering Warner Bros. a lucrative package that includes airing playoff and regular season games on both the NBC network and its Peacock streaming service. Discovery may find challenging to match.

Los Angeles Lakers v Denver Nuggets - Game Five — DENVER, COLORADO - APRIL 29: Aaron Gordon #50 of the Denver Nuggets guards LeBron James #23 of the Los Angeles Lakers in the third quarter during game five of the Western Conference First Round Playoffs at Ball Arena on April 29, 2024 in Denver, Colorado. Photo by Matthew Stockman/Getty Images

Warner Bros. Discovery Faces NBA Rights Challenge Amid Financial Discipline Push

The potential loss of NBA rights poses significant challenges for Warner Bros. Discovery, whose CEO, David Zaslav, has stressed financial discipline since taking over the company.

Zaslav's approach includes cost-saving measures and a focus on reducing debt. However, retaining NBA rights may prove costly for Warner Bros. Discovery, as its market capitalization of $18 billion is dwarfed by Comcast's $150 billion.

One of the key elements of NBCUniversal's bid is the possibility of reviving the iconic NBA theme song, "Roundball Rock," composed by John Tesh. This theme, synonymous with NBA broadcasts on NBC until 2002, holds nostalgic value for many fans. If NBCUniversal secures NBA broadcasting rights, it could reintroduce "Roundball Rock," adding to the charm of its broadcast offerings.

The impact of NBCUniversal's bid extends beyond Warner Bros. Discovery's financial struggles. The NBA's media rights negotiations, which will begin after the 2024-2025 season, point to a changing sports broadcasting environment. Streaming platforms like Amazon Prime Video are gaining prominence, with Amazon likely to secure rights to the Conference Finals.