Warner Bros. Discovery Sued For Misleading Investors On NBA Before Losing It
deadline.comA shareholder has sued Warner Bros. Discovery, the soon-to-be former home of the NBA, for violating securities law by misleading investors on the impact of losing its long-standing rights deal with the league.
Richard Collura filed the suit in New York federal court seeking class action status on behalf of shareholders who purchased WBD stock between February 23 and August 7 of 2024, which is when the media giant took a massive $9.1 billion write-down at its networks segment related in part, it said, to losing the NBA on TNT.
With linear television in decline, Paramount also took a large write-down in the same quarter. Under its existing 2014 deal with the NBA, TNT paid an annual average fee of $1.2 billion.
4. In 2024, the NBA entered advanced discussions with its various partners for a new round of media-rights deals that would last approximately a decade.
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