Sony Is Eyeing to Buy Half of Warner Bros. Discovery's Film and TV Music-Publishing Assets for $500 Million

Fei Ruby, Tech Times 23 June 2023, 06:06 am

In early 2021, Sony planned to allocate $18.39 billion for strategic investments for the next few years. This year, they have been closely monitoring the potential acquisition of Warner Bros. Discovery's holdings.

The newly formed media company, resulting from the merger between WarnerMedia and Discovery Inc., is reportedly negotiating to sell a significant portion of its film and TV music-publishing assets for approximately $500 million.

(Photo : PHILIP FONG/AFP via Getty Images)
The Sony logo is displayed at an entrance of the company's headquarters in Tokyo on February 3, 2021.

Key Players in the Media Landscape Engage in Talks

According to three Variety sources, the deal involves selling the rights to around half of the storied Warner studio's catalog, with Sony emerging as the frontrunner among potential buyers.

While the specific assets included in the deal have not been disclosed, insiders suggest that the catalog comprises music from notable movies such as "Purple Rain," and various "Batman" films and other titles. However, the exact scope of the rights being offered remains unclear.

Esteemed attorney Allen Grubman reportedly oversees the negotiations on behalf of Warner Discovery CEO David Zaslav. Representatives for Warner Discovery, Sony, and Universal have declined to comment or have not responded to Variety's requests for confirmation or additional information.

Sale Could Prove Advantageous for Warner Bros. Discovery

Although the potential purchase has generated interest, some industry observers express skepticism regarding the value and marketability of the assets.

Many of the catalog's contents are considered aging and potentially declining in value, consisting primarily of film themes and cues rather than conventional songs. It is worth noting that Universal Music Publishing presently administers the catalog through a multi-year agreement.

If the reports prove accurate, the deal will provide a much-needed boost for Warner Bros. Discovery, particularly amid a challenging period for the company and its investors.

Hollywood is currently experiencing a writers' strike that has had a significant impact, while the Discovery and Turner brands have undergone 100 layoffs, with more expected in the coming months.

Furthermore, CEO David Zaslav recently dismissed his personally selected CNN CEO, Chris Licht, after just one year, following the network's controversial town hall event featuring former president Donald Trump. The proceeds from the asset sale would greatly aid Warner Bros. Discovery in reducing its substantial $49.5 billion debt.

The potential deal also arises amidst a rapidly changing television landscape. The traditional dominance of domestic cable channels, including Discovery, TNT, TLC, Food Network, and CNN, has been upended by the evolving pay TV marketplace and the emergence of on-demand streaming services.

These shifts have disrupted the cable TV industry's previous profitability and viewership, which had propelled the former Time Warner to great success during the 1990s and early 2000s.

Warner Bros. Discovery's reported negotiations to sell a significant portion of its film and TV music-publishing assets to Sony for around $500 million could give them a financial boost to the newly-formed company.

While concerns regarding the value and marketability of the aging assets have been raised, the potential windfall would help Warner Bros. Discovery tackle its substantial debt and navigate the evolving television landscape.