Charter deal renewal aids Warner Bros Discovery amid NBA worries, brokerage says
** Shares of media and entertainment company Warner Bros Discovery WBD.O edge up 0.5% at $8.49
** Deutsche Bank says early renewal of deal between Charter Communications CHTR.O and WBD is positive for media firm amid market's concerns over the impact of losing NBA rights on affiliate pricing
** WBD succeeded in reducing the risk of TNT affiliate revenue stepping down significantly due to the loss of NBA rights, and increased exposure to its ad-supported Max streaming service - brokerage
** "We estimate Warner's current NBA contract contributes ~$250M in EBITDA per year" - brokerage
** WBD's decision to pass on renewing its current NBA package was a reasonable one; the deal would have driven a ~$500 mln loss in 2026 if WBD had signed same package
** Brokerage says it does not mean Comcast CMCSA.O "egregiously overpaid" for NBA rights as it brings value to its Peacock streaming service by driving subscriber acquisition and churn reduction
** Up to last close, WBD down ~26% YTD
Reporting by Jaspreet Singh in Bengaluru
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