According to people familiar with the matter, AT&T Inc.’s WarnerMedia and ViacomCBS Inc. are looking into a significant stake or possible sale of CW Networks, which they jointly own.
Those close to the talks said suitors include Nexstar Media Group Inc., the country’s largest broadcaster, and a major owner of the network’s affiliates. The CW Network primarily caters to teens and young adults.
People close to the talks said they were far away and an agreement could be reached soon, although talks could still break down. There are other interested parties, but discussions with Nexstar are the most advanced, he said.
The people said the most prevalent scenario is Nexstar taking a controlling stake in The CW, with CBS and WarnerMedia remaining as minority owners and gaining a commitment to be the primary program supplier for the network.
CBS and WarnerMedia have been exploring strategic options for The CW Network for several months, some of the people involved in the talks said. The network is not profitable as a stand-alone broadcasting entity, but the content produced for it is a valuable asset to the parent companies’ other platforms.
Warner Bros., which produces some of The CW’s biggest shows, including “Riverdale,” has generated significant revenue over the years by selling shows to Netflix Inc. Other popular shows on The CW include “All American” and “The Flash.”
Popular CBS-produced shows for The CW include “Walker” based on intellectual property from the TV show “Walker Texas Ranger”.
With the launch of HBO Max, a WarnerMedia-owned direct-to-consumer streaming service, future CW shows created by Warner Bros. will be funneled there.
AT&T is in the process of merging its WarnerMedia entertainment assets, which also include cable networks TNT, TBS and CNN, with programming behemoth Discovery Inc. to form a separate company. The deal is expected to close in the spring.
For Nexstar, a controlling stake in The CW would represent a significant step forward in its content aspirations. It is already investing heavily in a national cable news service called NewsNation.
ViacomCBS and WarnerMedia have been longtime partners of the CW network since the merger of the UPN and WB networks in 2006.
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