The $43 billion merger between Discovery and WarnerMedia can proceed as planned. The Internal Revenue Service has given the deal a “favorable” ruling according to Wendy Lee of the LA Times. That means a merger would be tax-free for shareholders of each company.
Discovery is already a sports powerhouse overseas. A merger with WarnerMedia would make Discovery a player in sports media in the US as well, with Turner Sports and its deals with the NHL and NBA.
A merger between the two companies has also been given the green light in Europe. That doesn’t mean this is a done deal though. Democratic lawmakers in the US have asked that the merger proceed under strict scrutiny.
One aspect of the deal of particular interest to sports fans is streaming rights. While it was initially reported that WarnerMedia’s HBOMax would carry some NHL games when TNT won the league’s TV rights B package, that never came to fruition. Discovery has been very active overseas with streaming sports including special golf platforms and Olympics coverage.
What could Discovery’s streaming sports presence look like in the United States? Would live games end up on HBOMax or even Discovery+? Just last month, Andrew Marchand of The New York Post reported that the company made a play for the US broadcast rights for the Premier League and were considered a “dark horse contender” to land NFL Sunday Ticket.
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