It’s a subject that’s been discussed across Hollywood and Manhattan for weeks. And, with high-profile axes to prime-time scripted television programs at the network, it seemed only inevitable that a deal involving its sale would come sooner rather than later.
As the week of August 15 began, rumors became reality as Nexstar Media Group entered into a definitive agreement to acquire a 75% ownership in The CW.
The network’s current co-owners, Warner Bros. Discovery and CBS parent Paramount Global, will each retain a 12.5% ownership stake in the CW. Nexstar says they will continue to produce original, scripted content for the CW.
What those shows will be is likely the subject of much speculation for the NATPE and Television Critics Association members who have digested the news that nine series were cancelled since April 2022. This, along with confirmation that after seven seasons, Riverdale is over, positions The CW as a transitional network that could take on less of a Young Adult programming skein.
Axed in the last four months are “Batwoman,” a reboot of the 2004 series “The 4400,” a reimaging of the late 1990s series “Charmed,” “DC’s Legends of Tomorrow,” DC superhero-themed series “Naomi,” supernatural drama “Roswell, New Mexico,” a reboot of the ABC prime-time soap “Dynasty,” The Vampire Diaries spinoff “Legacies,” and blind woman-as-sleuth series “In The Dark.”
Eight series were renewed; three were added. That said, Warner Bros. Discovery has attracted much attention across the industry for its axe-wielding fury that shelved Leslie Grace-helmed film “Batgirl” altogether, killed “The Time Traveler’s Wife” reboot on HBO Max and put many on notice that production and licensing budgets were being put under the microscope.
Thus, how Nexstar works with Paramount Global and Warner Bros. Discovery on original, scripted content could result in a lineup of new shows that takes a wholly different approach from the most recent seasons.
For Nexstar, the purchase of The CW is a natural. Thanks to its merger with Tribune Broadcasting, it became the largest CW affiliate group and the owner of such storied stations as WGN-9 in Chicago and KTLA-5 in New York. Through its partner Mission Broadcasting, it operates WPIX-11 in New York. Nexstar stations account for 32% of The CW’s national reach.
At the same time, Nexstar has been working hard to increase its audience for its NewsNation MVPD-distributed news and information channel, formerly WGN America. With The CW in the mix, Nexstar is now effectively a company that has created a “Big Five” among owned-and-operated broadcasting companies with networks, joining Paramount Global (CBS), NBCUniversal, The Walt Disney Company (ABC) and FOX.
In a pre-market announcement released early Monday, Nexstar said the proposed transaction “is expected to create value for Nexstar shareholders by solidifying the
company’s revenue opportunities as the largest CW affiliate, diversifying its content outside of news, increasing its exposure to the national advertising market, establishing it as a participant in advertising video-on-demand services and improving The CW ratings, revenue, and profitability, by prioritizing programing for the network’s broadcast audience.”
Indeed, it is that last statement — prioritizing programming — that all will have an eye on in the coming months.
Mark Pedowitz will remain Chairman/CEO of The CW, with responsibility for day-to-day operations.
“Our acquisition of The CW is strategically and operationally compelling, as it will enable us to leverage our operational experience to improve the network’s performance through our management of this powerful national platform,” said Nexstar Chairman/CEO and founder Perry Sook. “We plan to apply the same strict financial standards to operating The CW as we apply to our other businesses.”
CBS President/CEO George Cheeks added, “The CW has delivered signature programming to its broadcast and digital audiences for 16 years. Together, with our partners at Warner Bros. and The CW, we have created a welcome home for content that has resonated with viewers on the network and on platforms around the world. This new ownership structure enables us to partner with Nexstar and Warner Bros. Discovery on the next chapter of
The CW while re-deploying capital to other content platforms at Paramount.”
Channing Dungey, Chairman of the Warner Bros. Television Group, also chimed in. He said, “For 16 seasons, The CW has been home to some of the most groundbreaking and generation-defining programming in television … We look forward to continuing to collaborate on our shared series and future projects to come under Nexstar’s leadership. We are forever grateful to our partners at The CW, especially Mark Pedowitz, who has been a great friend to the studio for so many years, and to me personally. We know that the network will continue to thrive under his leadership.”
Dungey noted that the series Supernatural will see a spin-off, “The Winchesters,” premiere this fall; Warner Bros. Television is producing the series.
Kirkland & Ellis LLP and Loeb & Loeb LLP served as legal advisors to Nexstar. Guggenheim
Securities acted as financial advisor and Paul Hastings LLP served as legal advisor to Warner Bros. Discovery, Paramount Global and The CW.
The transaction is expected to close in the third quarter.
After topping the $200 mark on Thursday, a first for Nexstar Media Group shares, the company’s stock price was at $199.25 at 9:45am Eastern on Monday, August 15.
