Warner Bros Discovery Inc (NASDAQ:WBD, ETR:J5A) ticked up on Monday after announcing a deal with the National Basketball Association to bring an end to a legal dispute over live game rights.
Warner Bros sued the NBA in July over claims the league did not allow it to use matching rights on a package of live games as rivals were selected to air fixtures in the US.
This brought an end to Warner Bros’ ownership of domestic rights to NBA games, which it had carried since 1989, as Walt Disney Co, Comcast Corporation and Amazon.com Inc were awarded contracts for the coming 11 years.
Under the new deal, Warner Bros will promote some NBA content, show highlights online and through social media and air games via its TNT Sports platform in some areas abroad.
While this ends Warner Bros’ 40-year relationship with the NBA as a carrier of live games at the end of this season, the agreement will see ESPN allow TNT to televise some football and men’s basketball games each season from 2025.
Warner Bros will also continue producing its ‘Inside the NBA’ show under the agreement, though this will be aired on Disney’s ESPN.
“We are pleased to partner with the NBA and Disney/ESPN, and to have solidified long-term rights and revenue for Warner Bros,” chief executive David Zaslav commented.
Shares climbed 2.8% on Monday.