The Discovery Global spinoff will not happen with a WBD-Paramount deal; Paramount is confident in remaining in business with NFL; and Atlanta Braves Holdings explains the advantage that comes with their local television territory. Plus news on Xfinity TV, Fox Sports, ESPN and USA Gymnastics.
Discovery Global spinoff will not happen with WBD-Paramount deal
Warner Bros. Discovery will not move forward with its original plan to spin off its global networks into the new venture Discovery Global if the company reaches a merger agreement with Paramount (as is now viewed a formality), a WBD spokesperson confirmed to Sports Media Watch. Had Netflix, which bowed out of the bidding Thursday, prevailed in its bid for the WBD streaming and studios division, the WBD linear cable networks — including the TNT Sports networks of TNT, TBS and truTV — would have remained a standalone entity. Instead, with WBD poised to accept Paramount’s bid for the entirety of the company after deeming it “a ‘company superior proposal'” earlier Thursday, the TNT Sports networks would join the same corporate umbrella as CBS Sports.
Just hours before the Netflix announcement, WBD CFO Gunnar Wiedenfels said that WBD still has an “appetite for sports rights” and called it one of the “important strategic pillars” for the company. Wiedenfels, who would have been the CEO of Discovery Global, added that WBD would remain fiscally prudent, but is nonetheless “open for business.” Wiedenfels: “You will always see us involved in every process that’s ongoing, and we will know what the value is, and we’ll continue to be great partners. We’re very happy with the partnerships that we have, and there will certainly be continued appetite as we go forward, even after separation into Discovery Global.”
It is still possible that the TNT Sports networks will remain independent, as a Paramount deal would still need to pass regulatory scrutiny.
Since losing domestic NBA rights in 2024, TNT Sports has added properties like French Open tennis and Big 12 football games, begun a previously-negotiated deal with NASCAR, and continued to carry MLB and the NHL. The loss of NBA rights has adversely affected the growth rate on advertising revenue by 4% “on a constant currency basis.” For the quarter as a whole, WBD had revenue of $9.46 billion (-6% YoY) and adjusted EBITDA of $2.2 billion (-19% YoY).
Paramount confident it will remain “in business with the NFL for a long time”
Paramount president Jeff Shell expressed confidence that the company would “be in business with the NFL for a long time” as the league reportedly considers renegotiating media rights deals early. Shell, speaking on the Paramount fourth-quarter earnings call on Wednesday before the new developments surrounding WBD, said that the companies “feel very good” about each other and there is no reason to be “particularly concerned.”
The NFL has an equity stake in Paramount through the Skydance Sports joint venture it formed several years ago, although it is less than the 10% stake the league recently took in ESPN. Prior to last season, NFL EVP/media distribution Hans Schroeder said that the league would maintain “an arm’s length” in future negotiations with partners in which it has an equity stake. Shell added on the earnings call that the company has “properly accounted for what we expect to be whatever impact of that negotiation in our internal forecast going forward.”
Regarding its now apparently-successful quest to acquire Warner Bros. Discovery, Paramount called the media conglomerate “an accelerant” that would help it achieve its goals. The company recently issued an amended offer for $31/share, bolstered the regulatory termination fee to $7 billion and moved up the timeline in which the $0.25/share quarterly “ticking fee” would take effect. WBD’s board of directors said after market close Thursday that the Paramount offer “constitutes a ‘company superior proposal,'” and Netflix subsequently declined to match.
Paramount generated $8.15 billion in revenue (+2% YoY) on adjusted OIBDA of $612 million (+7.5% YoY) for the fiscal fourth quarter. The company said it expected to accrue $30 billion in total revenue in FY 2026, which would mark a 4% increase from the previous year. Paramount operated at a $95 million loss following the Skydance merger’s completion last summer and shared that it is “firmly on track to deliver at least $3 billion in efficiencies through 2027.”
McGuirk: Braves confident in producing/distributing games with Main Street “out of the way”
Terry McGuirk, chairman, president and CEO of Atlanta Braves Holdings, said in an earnings call Thursday that with former broadcast partner Main Street Sports Group now “out of the way,” the organization is “confident” in its ability to “produce, distribute, and deliver our games and additional Braves content in a way that is compelling and serves our fans very well.” The Braves announced Tuesday that they will control their own local telecasts via a new “BravesVision” platform starting this season.
The Braves, like the eight other teams who left Main Street earlier this month, will be sacrificing the possibility of a rights fee in the process, But McGuirk said the Braves are better-situated than those other teams due to the size of their television territory, which he said offers the opportunity to “optimize” their “financial outcome.”
The Braves previously joined Major League Baseball in filing an objection against then-Diamond Sports Group’s reorganization plan in November 2024 when the RSN operator was embroiled in Chapter 11 bankruptcy proceedings. “Based on the current inadequate record, the Braves and MLB have grave concerns that, if the Plan is confirmed, there is a substantial likelihood that the Debtors will find themselves once again in financial distress and/or bankruptcy court in the near future,” the two sides said in the objection, which it withdrew five days later. Diamond ended up emerging from bankruptcy last January and rebranded as Main Street, which recently issued “WARN notices” to employees and is reportedly facing potential liquidation.
Braves president/CEO Derek Schiller referred to the launch of BravesVision as “a defining moment” for both the franchise and fans. Consumers are able to sign up to stream games using the Braves.TV streaming platform, and details on distribution are going to be updated once deals are finalized. Tom Friend of Sports Business Journal reported Monday that the organization is “in talks on distribution deals with” a variety of service providers, such as Comcast, YouTube TV and Hulu among others.
Plus: Xfinity TV, Fox Sports, ESPN, USA Gymnastics
- Eligible Xfinity TV customers can now access ESPN Unlimited with account authentication, allowing for users to stream ESPN linear networks, view exclusive events and unlock an annual discount on MLB.TV if they wish to become new subscribers to the out-of-market service. Customers will receive an email with instructions on the authentication process and can also link existing accounts using the Xfinity website’s subscription page.
- Fox Sports unveiled a new “Sports AI” feature on its app Thursday that allows users to receive updates, hear different commentaries and speak to the interface directly. Colin Cowherd, host of “The Herd” on FS1 and Fox Sports Radio, is the basis of the AI, which utilizes the company’s “extensive content library and real-time sports data.” Cowherd is the latest sports personality to move into this space after NBC used an AI-replicated version of Al Michaels‘ voice for recaps during the Paris Olympics and Jim Fagan for its “NBA on NBC” open. ESPN has also experimented with this space, replicating the voices of anchors Gary Striewski, Hannah Storm and Christine Williamson for the personalized “SportsCenter” on its app.
- ESPN and the Horizon League have reached a multiyear extension of their media rights agreement, retaining the network as the home of its men’s and women’s basketball championship game. The deal extends the 38-year relationship between the entities and also includes rights to the men’s basketball semifinals and six games within its regular season. In addition, ESPN is also going to continue airing American Cornhole League events under a three-year renewal of their media rights agreement that includes a minimum of 30 hours for original programming, according to a report by Austin Karp of Sports Business Journal.
- Procter & Gamble has struck a new deal with USA Gymnastics through 2028, it was announced Thursday, returning as a sponsor after exiting in 2017 due to the organization’s much-publicized abuse scandals. Terry Lefton of Sports Business Journal reported that P&G was the first company to return following the scandals and will have a “significant presence” on televised events for USA Gymnastics.
