• by Karlene Lukovitz  @KLmarketdaily, January 6, 2022

AT&T’s WarnerMedia and ViacomCBS, which jointly own the The CW Network, are exploring a possible sale of some or all of the network.

Although there are other interested companies, talks are “far along” with Nexstar Media Group, sources told The Wall Street Journal, adding that negotiations could still fail to result in a deal.

The most likely arrangement would be Nexstar gaining a controlling stake of the network, with CBS and WarnerMedia keeping minority stakes and securing agreements to be CW’s primary content providers, said the sources.

AT&T has been divesting “non-core” assets to reduce its debt load and fund expansion of its mobile/broadband and streaming businesses.

The CW is not profitable as a broadcast entity, but generates significant revenues through syndication of shows produced by Warner Bros., such as “RiverVale,” syndicated to Netflix, and CBS, such as “Walker.” 

Nexstar, the largest U.S. broadcaster, owns many of the CW Network’s affiliates. It is engaged in an expansion push that has included investment in the fledgling NewsNational national cable network.