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Warner Bros. Discovery (WBD.US) has entered a bidding war with Amazon (AMZN.US) for the rights to broadcast NBA games.

AInvestMonday, Jul 22, 2024 9:20 pm ET
1min read

Warner Bros. Discovery (WBD.US) is using a clause in its soon-to-expire contract with the NBA to bid for the NBA's broadcast rights.

Warner Bros. Discovery said in a statement, "We are disappointed that the league has informed us that it intends to accept other game bids in our current rights package and let us continue to match the terms of the current agreement, which is part of our current agreement and what we are entitled to pay under our agreement."

The company said it had submitted its proposal to the league earlier this week.

A league spokesperson confirmed the league had received the proposal and was reviewing it.

Under a new 11-year, $76 billion deal with ESPN and Comcast's (CMCSA.US) NBC and Amazon.com (AMZN.US), the new partners have agreed to pay about $1.8 billion a year.

Warner Bros. Discovery, which owns TNT and TBS, has broadcast the NBA for decades. Inside the NBA, hosted by basketball legend Charles Barkley, is one of its most popular shows.

But after a period of exclusive negotiations with its current partners, Warner Bros. Discovery and ESPN, the league has begun to attract new bidders.

Warner Bros. Discovery plans to broadcast games on TNT and its Max streaming service, as it does now, according to a person familiar with the matter. The company, which has more than $40 billion in debt, has obtained a letter of credit to support its bid, the person said.

If the NBA decides to question the match, the league could argue that Amazon's deal is not consistent with the terms of Warner Bros. Discovery's soon-to-expire contract.

The new deal is set to start in the fall of 2025.

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