Co-owners WarnerMedia and ViacomCBS Inc are exploring the option of maximizing the value of their joint venture by selling CW network as television viewing is under transformation stage.
According to the CEO of CW Network, Mark Pedowitz, the transformation in the present scenario sees plenty of business activities across content and media companies in a memo to staff on Thursday. Pedowitz said that it was too premature to speculate on what could happen but promised to keep them updated.
As per news from Bloomberg, there is speculation that WarnerMedia and Viacom are considering selling a part or whole of CW Network for quite some months. Nexstar Media Inc., an owner of a large TV station with several CW affiliates, is among the potential buyers. The people familiar with the matter requested not to be identified as the matter is not public, and talks are being held privately. A Nexstar spokesman declined to comment on the subject.
The two media giants formed CW Network 15 years ago as a joint venture. CW is a free over- the- air network that focuses on Young Adults and Teens. Among its several hits include the “All American,” a high school serial, and several DC Comics superheroes as well.
Broadcast TV viewership has declined as audiences have switched over to on-demand streaming platform services. The CW gets a lot of shows from WarnerMedia who looks to feed HBO Max, its streaming platform in the future.
ViacomCBS wants to hive off its non-core assets with facilities like its TV studio. Viacom intends to use the sale proceeds to fund the expansion of its Paramount+ streaming platform services. In the meantime, WarnerMedia is in the process of being acquired by Discovery Inc.
The share prices of Viacom and AT&T, owners of WarnerMedia, changed little Thursday in New York.
