With its stock sinking -- and with prospects of its live, linear TV business declining further -- Warner Bros. Discovery issued a statement about the NBA's rejection of its "matching" bid to continue with the league under a long-term contract.

“We think [the NBA has] grossly misinterpreted our contractual rights with respect to the 2025-26 season and beyond, and we will take appropriate action,” said the company in a statement.

According to multiple reports, Warner Bros. Discovery intends to file a lawsuit against the league. Many analysts believe the rejection of its matching bid would force the company to take legal action against the league.

On Wednesday, as expected, the NBA finalized deals with the three media companies -- 11-year agreements totaling $77 billion -- with Walt Disney (ESPN, ABC Television Network), NBCUniversal (NBC Television Network, Peacock) and Amazon (Prime Video).

Media executives say WBD targeted the Amazon package in an effort to renew its decades-long NBA association with its TNT network and for its premium streaming platform, Max. 

The NBA’s deal with Amazon is believed to focus primarily on streaming and CTV. WBD's matching bid was for both linear and streaming.

The NBA, in a statement, commented about new deals, saying: “Our new arrangement with Amazon supports this goal by complementing the broadcast, cable and streaming packages that are already part of our new Disney and NBCUniversal arrangements.”

Warner Bros. Discovery stock was down 6% to $7.95 in early Thursday morning trading. 

Live sports remains a major key programming package for live, linear TV networks groups -- as well as for new rising premium streaming platforms.

Sports commands high premium prices from advertisers. The NBA -- ranked second only to the NFL in terms of sports viewership and advertising spend, according to analysts -- has been a key element of sports content for TNT.

Walt Disney has been reported to be paying an average of $2.6 billion a year under the deal, with NBCUniversal at $2.5 billion and Amazon at $1.9 billion.

Disney will continue to secure the highest viewing programming of the league -- especially in the post-season with the NBA Finals, as well as at least one conference final in 10 years of the 11-year deal. It also gets an early-round playoffs series,  as well as 80 regular-season games. 

NBCUniversal will get a total of 100 regular-season games, early-round playoff games, and one conference final series every other year which rotates with Amazon Prime Video.

The story has been updated.