The same folks who cut the cord on CNN+ continue to make “moves” to trim debt or cut losses. This week’s lesson comes from the CW. What Ace calls the “WokeSuperheroes and teenagers-talking-in-hallways network.” They “sold” it for zero dollars.
According to the Wall Street Journal, should the deal move to completion, Nexstar will have 75% control of The CW, with the remaining 25% stake of the network split evenly between Paramount and Warner Bros. Discovery at 12.5% each. Nexstar is the biggest owner of local television stations in the US, and the deal for The CW stake will not be one where cash changes hands in the normal sense. This deal will see Nexstar cover the network’s debts, which have risen to $100 million.
Nexstar assumes all the debt for a 75 share and Paramount/WB/Discovery keeps a one-quarter interest. But what do they do with it? CW has been wrecking the DC franchise for years. Sure, Arrow, Flash, and Supergirl did well but that was years ago. And I can’t think of anything on the CW I’d watch.
What Else?
There were likely other issues, not just the #wokeness. When we did watch it the streaming app was a cluster. Buggy. It made wanting to follow a program or a story that was worth watching – if you could find one – a challenge. As the programming declined, perhaps the app improved, but with thousands of choices, no one was watching or the debt situation wouldn’t look this bad.
It reminds me of Newsweek. That sold for what, one dollar, and the buyer assumed the debt. I think it is still around but I can’t recall anything coming out of there that was any different from any other left-leaning corporate “faux-business” media.
And now it’s the CW cobbled together from the remains of the floundering UPN and WB Networks in 2006. CW was owned by CBS and Warner Brothers (insert numerous partners and interactions since added) the owners of UPN and WB respectively.
Nexstar seems to think it has some value if it is assuming the debt but what that means remains to be seen and I suppose, while we’re not really watching, we’ll be watching.
To see if they’ve learned any lessons or intent to pour more money down the same hole.
