Warner Bros. Discovery to match Amazon’s NBA offer

TheStreet’s Conway Gittens brings you the biggest news of the day, including what investors are watching and why the NBA has a decision to make.

Transcript

00:00I'm Conway Gittins reporting from the New York Stock Exchange.

00:02Here's what we're watching on the street today.

00:04Wall Street is fixated on a cavalcade of corporate results.

00:08Coca-Cola kicked things off by topping profit estimates

00:10and boosting its outlook for the year.

00:12General Motors did the same.

00:14UPS, however, missed sales and earnings forecasts.

00:17Package deliveries continue to slow from the frenetic boom

00:20seen during the pandemic years.

00:23Turning now to other headlines, Warner Brothers Discovery

00:26says it has matched Amazon's $1.8 billion

00:29attempt to steal away NBA games that currently air on TNT,

00:34one of Warner Brothers Discovery's cable channels.

00:36Quote, this will allow fans to keep

00:38enjoying our unparalleled coverage, including

00:41the best live game productions in the industry

00:44and our iconic studio shows and talent

00:47while building on our proven 40-year commitment

00:49for many more years, said the company in a statement.

00:52Under the current deal, which expires

00:54at the end of next season, Warner Brothers Discovery

00:57has the right to match any new offer.

01:00Despite that contractual right, Warner Brothers Discovery

01:03is coming in as the underdog.

01:05Its cable business is hemorrhaging viewers,

01:08and its max streaming service only

01:09has 100 million subscribers.

01:11Meanwhile, Amazon Prime Video has more than 200 million

01:15global subscribers.

01:16And that's not Amazon's only advantage.

01:19It has deep pockets and a $1.9 trillion market cap

01:23it can leverage.

01:24On the other hand, Warner Brothers Discovery

01:27is laden with debt and only has a market cap

01:30of $20 billion to lean on.

01:32Adding to the drama, other media companies

01:34are offering more for their pieces of the NBA TV pie.

01:38Disney is reportedly ponying up $2.6 billion a year,

01:42and NBCUniversal is paying $2.5 billion a year.

01:46That'll do it for your daily briefing

01:48from the New York Stock Exchange.

01:49I'm Conway Gittins with The Street.