Finally, the National Basketball Association (NBA) has made its decision, announcing deals for media rights worth $77 billion with Disney’s (DIS) ESPN, Amazon (AMZN), and Comcast’s (CMCSA) NBCUniversal. It’s important to highlight that this NBA new deal excludes long-time partners TNT and TBS, owned by Warner Bros. Discovery (WBD).
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Although Warner Bros. made a last-minute bid to retain its broadcasting rights, the NBA rejected WBD’s proposal to keep games on its TNT network. With WBD’s bid rejected, there is a possibility for a potential legal battle.
Details of the NBA Deal
Under the new deals, Disney will pay an average fee of $2.6 billion annually to continue broadcasting NBA games on ESPN and ABC, a substantial increase from the current $1.5 billion per year. NBCUniversal will pay $2.5 billion a year for airing games on NBC and its streaming service, Peacock. Additionally, Amazon Prime Video has secured a streaming package for $1.9 billion a year.
These 11-year media rights deal, set to commence after the 2024-2025 season, will significantly boost the league’s annual revenue.
Looking Ahead
The NBA deal will significantly expand the number of regular-season games available on broadcast TV, enhancing the experience for its fans. The NBA aims to extend its content reach across multiple platforms.
Which Stock Is the Best Buy?
Among the above-mentioned four stocks, both DIS and AMZN have a Strong Buy consensus rating, while CMCSA and WBD stocks have a Moderate Buy rating.
Regarding future price performance, analysts expect an upside potential of over 24% for all four stocks.
