Los Angeles, CA – In a significant development in the world of sports broadcasting, Warner Bros. Discovery saw a sharp decline in its stock price following reports that Comcast’s NBCUniversal is preparing a substantial bid to secure NBA broadcasting rights currently held by Warner Bros.’s TNT network. This news sent shockwaves through the industry, with Warner Bros. Discovery experiencing its lowest stock close since February 2009.

According to sources cited in the Wall Street Journal, NBCUniversal is nearing a deal to pay an impressive $2.5 billion annually to broadcast a package of NBA games, marking a substantial increase from the $1.2 billion that Warner Bros. Discovery currently pays. This potential deal would include both playoff and regular season games, which would be aired on NBC as well as its streaming service, Peacock.

After failing to reach a new agreement with the NBA before the expiration of its exclusive negotiation period, Warner Bros. Discovery now faces the looming possibility of losing its rights to NBA broadcasts. On the other hand, Disney, another major broadcaster of NBA games, has reportedly agreed to a significant increase in its annual payment to the league in order to renew its deal.

The world of sports broadcasting has seen a significant shift in recent years, with tech giants like Amazon, Apple, and Google stepping up their efforts to secure lucrative streaming deals. Amazon, for example, made headlines by debuting the first-ever Black Friday NFL game and committing to a substantial $1 billion annual investment in NFL Thursday Night Football.

In response to the escalating costs of sports rights deals, Warner Bros. Discovery recently announced a joint venture with ESPN and Fox to enter the sports streaming market. This move reflects a broader trend in the industry, as traditional media giants look to adapt to the changing landscape of sports broadcasting.

As the battle for sports broadcasting rights heats up, it’s clear that deep-pocketed tech companies are reshaping the industry. With streaming services becoming increasingly popular, the competition for exclusive sports content is fiercer than ever before. Warner Bros. Discovery’s struggle to retain its NBA broadcasting rights serves as a stark reminder of the shifting dynamics in the world of sports media.