Warner Bros Discovery Settles Lawsuit with NBA

(Reuters) – Warner Bros Discovery (NASDAQ:WBD) has settled its breach of contract lawsuit against the National Basketball Association (NBA), as reported by the Wall Street Journal on Saturday, citing sources familiar with the situation.

The agreement ensures that the media company will maintain its business relationship with the league for the next decade, with an announcement expected early next week.

Both Warner Bros Discovery and the NBA did not immediately respond to requests for comment from Reuters outside of business hours.

The settlement grants Warner Bros Discovery rights to a significant amount of NBA content domestically and internationally, allowing the league to avoid a lengthy court battle, according to the WSJ report.

In a separate agreement, Warner Bros Discovery has licensed its Emmy-winning show "Inside the NBA" to Disney's ESPN and ABC starting next season.

Warner Bros Discovery's sports division, Turner Broadcasting System, had filed a lawsuit against the NBA in July after the league awarded broadcasting rights to ESPN, NBCUniversal, and Amazon.com under an 11-year deal worth $77 billion. The lawsuit claimed that the NBA's failure to honor Warner Bros Discovery's right to match third-party offers violated its agreement with Turner.