Viacom CBS Inc. and AT&T's Warner Media (parent company of Warner Bros.) are reportedly considering strategic solutions for a partial or a complete sale of their jointly owned television broadcasting company, CW Network.
For those unaware, CW Network caters particularly to the teen and younger demographics and has been a hit platform for shows such as Riverdale, All American, and The Flash. The network was founded in 2006 through a collaboration between Viacom CBS and Warner Media during the merger of the UPN and WB networks took place back in 2006.
However, CW Network has failed to be profitable as a stand-alone broadcast entity, thus managing to generate considerable revenues by selling its valuable content to OTT giant Netflix over the years. According to reports, Nexstar Media Group, Inc., the largest broadcaster in the United States with a sizable affiliate of the CW network, is among the leading pack of promising buyers.
Experts believe that the sale of CW Network would represent the best-case scenario for all involved, while Viacom and Warner will continue to remain minority owners and receive commitments as the primary suppliers for the programs.
Meanwhile, sources claimed that the negotiations are still ongoing, and an agreement could be reached soon but at the same time it is also likely that it falls apart given the enthusiastic interest of other parties. It is worth noting here that the talks with Nexstar are currently at their most advanced stage.
The CW Network shows created for Warner Bros. are likely to be channeled into HBO Max, Warner Media's newest direct-to-consumer streaming service.
Nexstar's ownership of the CW Network would be a remarkable step forward in its content strategy and online presence, as the company has already invested heavily in NewsNation, a national cable news service.