Nexstar Media Group, the biggest owner of U.S. local television stations, is close to a deal to acquire 75% of The CW Network from co-owners Warner Bros. Discovery and Paramount Global (who would each retain12.5% stakes) according to The Wall Street Journal.
Nexstar, already the largest owner of CW affiliates, isn’t expected to pay cash for The CW. Rather it would assume at least a significant portion of the network’s current losses which could exceed $100 million.
CBS and Warners are expected to continue to create content for the CW going forward, but Nexstar is also planning to acquire shows from other producers as well with the plan reportedly being to pivot programming to something closer to the older audience of its local stations.
In addition, Paramount and Warner Bros. Discovery are expected to retain several hundred million dollars in content-licensing revenue from pre-existing deals, including the former pact with Netflix.
The paper’s sources indicate an agreement could be finalized in the coming weeks. Immediate on-air changes aren’t expected at The CW as yet with the upcoming 2022-23 season line-up not expected to change in the event of the sale.
Source: The Wall Street Journal
