The CW for sale by WarnerMedia and ViacomCBS – The Hollywood Reporter


The CW is for sale.

The broadcast network, which houses shows like Batwoman and Walker, is bought by its business owners, ViacomCBS and WarnerMedia, confirm several sources at Hollywood journalist.

the the Wall Street newspaper, Who first reported the news says local television giant Nexstar is among the potential contenders. Nexstar, which owns 199 local television channels as well as the NewsNation cable channel and The hill, is one of The CW’s largest station owners. It is not immediately clear whether ViacomCBS and WarnerMedia plan to sell the entire network or retain minority stakes.

News of the possible sale comes as the network – a joint venture between CBS and WarnerMedia – has never been profitable since its inception in 2006, when the two companies merged the old UPN and The WB Network. Much of the revenue generated by the younger network comes from international and streaming sales of scripted originals such as Flash and Dynasty.

The CW previously had a long-standing release deal with Netflix that helped shows like Riverdale and All american reach a wider audience and ultimately grow in a linear fashion. This pact ended in 2019 when Warner Bros. TV and CBS Studios have shifted the library agreements to their respective streamers, HBO Max and Paramount +. The fact that overseas sales are almost fully completed also impacts profit margins on the originals, as CBS Studios and Warners seek to retain those rights for their respective streamers.

The end of the Netflix release deal and the loss of revenue from overseas sales created greater concern for studios that previously generated revenue not from linear sales but from Netflix and sales. international.

The CW, led by CEO Mark Pedowitz (who ranks as the oldest broadcast leader), targets viewers between the ages of 18 and 34 and has originals available for free on their website and CW Seed.

The network was originally designed to feature programming provided 50-50 by Warners and CBS Studios. Thanks in part to the success of Greg Berlanti’s DC Comics universe, including The Flash, Superman & Lois, Batwoman, The Flash and Legends of tomorrow, among others, Warners has been the main content provider on the network. CBS Studios provides scripted rates including Dynasty – The lowest rated original on the TV – and Charm, while other originals that aren’t based on DC or CBS IP are co-productions between the two studios.

Several industry insiders have speculated in recent years that ViacomCBS could divest its stake in The CW as its production on the network dwindles. The news that WarnerMedia, prior to its takeover of Discovery, would seek to sell its stake or become a passive partner of The CW would come as a surprise given the network’s share of studio programs led by Channing Dungey.

Representatives for WarnerMedia and ViacomCBS did not immediately respond to THRrequest for comments. A Nexstar spokesperson declined to comment.