As Nexstar Deal For CW Control Near End, Ownership Structure Focuses

According to people familiar with the upcoming transaction, Nexstar Media Group’s quest to control the CW is coming to an end.

Information about the deal first surfaced last January, but it took some time to learn the details. As currently structured, Nexstar acquired a 75% stake in the broadcast network as a result of the transaction, while existing partners Paramount Global and Warner Bros. Discovery will each receive 12.5%. Sources state that the potential deal is still likely to fall apart, but if it goes well, it could be formally signed in the coming weeks.

Wall Street Journal Received initial briefing on the ownership structure and the acquisition apparently closing soon.

Nexstar, which is the number one owner of local television stations in the US and also owns the NewsNation cable network and digital brands such as The Hill, would logically become the new owner of The CW, as it already has the largest number of affiliates. . . As both parents, like all media companies, try to streamline and balance their operations, Nexstar’s script is an organic way to get rid of red ink.

Nexstar, Paramount and Warner Bros. When Discovery contacted Deadline, it declined to comment.

Founded in 2006 as a consolidation medium between UPN and WB, The CW has since run 50-50 ventures between the various owners of CBS and Warner Bros., creating a series of shows with such youthful appeal. ᲭOrican girl, Riverdale Y all american. The network’s linear viewership matched by on-air TV is over 50, but the companies’ free and ad-supported streaming app and social channels attract a young, gay audience focused on the desirable 18- to 18-year-old demographic.

Macroeconomic conditions have deteriorated significantly since the deal was first made public earlier in the year, as rising inflation and rising interest rates have disrupted many trade deals. Experts say none of these factors are expected to have an impact on the CW process. For one, there are no initial costs for Nexstar. In return, the company has agreed to reimburse the grid for losses that could reach north of $100 million this year.

The strategic plan for the move will be to launch The CW as a fully sustainable broadcast network rather than optimizing it for streaming. While the network itself has consistently wiped out losses, the joint venture partners have made significant profits by licensing the CW shows to Netflix, sometimes agreeing to upgrade shows whose linear ratings don’t justify this rebroadcast. Existing parents signed a CW production deal with Netflix in 2019 as they began planning investments in their streaming services HBO Max and Paramount+.

When the network held its annual media buyer presentation in New York last month, CW boss Mark Pedovitz hinted at an anticipated change of ownership and a “time of transition.” The CW has announced that a significant number of shows have been canceled as it takes over the 2022-23 schedule. was among those suspended DC Legends of Tomorrow, Heritage, Betwomen, Naomi, Dynasty, Charming, Roswell, New Mexico, In the Dark, Y 4400.