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Data: Yahoo Finance; Chart: Axios Visuals

Warner Bros. Discovery's stock has lost about half of its value since it debuted in April 2022 following the merger of WarnerMedia and Discovery. 

Why it matters: Chris Licht's ousting from CNN is just the latest drama within WBD, as CEO David Zaslav tries to improve cash flow across the media giant's businesses to pay down its hefty debt load, Kerry writes.

By the numbers: The stock closed at $24.78 on its first day of trading, and it ended yesterday at $13.12, a 47% drop.  

Context: Restructuring charges from its merger have dogged the stock. 

In August, the company reported a net loss of more than $3.41 billion, stemming from a combo of transaction and integration expenses. In December, it upped its estimated restructuring charges. 

Shares also fell after the unveiling of Max, a combined streaming service for Warner Bros., HBO and Discovery content. 

The intrigue: Zaslav could be looking to spin off assets ahead of any larger sales. But it's doubtful CNN would be on the table. CNN is likely valued at far less than it was worth in late 2020, when Jeff Zucker explored a deal to sell the network for roughly $10 billion, Axios' Sara Fischer reports.

Warner Bros. Discovery stock is down 47% since debut

1 big thing: Value by half 

Lionel Messi intends to join Major League Soccer (MLS) club Inter Miami, the soccer star said yesterday.

Why it's the BFD: Messi's move has all kinds of significant consequences for sports, media and business, among them reported deals with Adidas and Apple in the offing. 

The backdrop: Messi spent the past two years with Paris Saint-Germain, winning two Ligue 1 titles,  Jeff Tracy and TuAnh Dam write.

The big picture: A potential return to Barcelona, where he played for 17 years, had been rumored alongside the lucrative offer to head to Saudi Arabia.

"If Barcelona didn't work out, I wanted to leave Europe, get out of the spotlight and think more about myself," Messi said in an interview with Spanish media.

Barça said in a statement that it understood and respected Messi's decision "to compete in a league with fewer demands, further away from the spotlight and the pressure he has been subject to in recent years."

State of play: Messi was reportedly tempted not only by Miami's lifestyle, but also by additional deals with brands like Adidas and Apple.

Apple holds exclusive MLS streaming rights, and the tech giant will share revenue generated by new subscribers to MLS Season Pass with Messi, per The Athletic.

A profit-sharing agreement with Adidas, one of MLS’ largest corporate sponsors, is also expected.

💭 Kerry's thought bubble: Athletes' deals have come a long way from Michael Jordan and Nike. 

2. The BFD: Miami in waiting; biz and brands too

Lionel Messi of Paris Saint-Germain during the match against Clermont on June 3. Photo: Tim Clayton/Corbis via Getty Images

The Washington Commanders' sale to the Josh Harris-led group is moving ahead and could be completed within the next month or two, according to reports. 

Why it matters: There had been concern that Harris, who already owns the Philadelphia 76ers and New Jersey Devils, would have trouble financing the more than $6 billion purchase of the team, Tim writes.

Yes, but: Harris had his first meeting with the finance committee to go over their concerns and they apparently came away happy, according to news reports. 

The big picture: Last month, the NFL's finance committee raised concerns at a meeting regarding the debt load and amount of equity partners and indicated they need time to scrutinize the details, the Washington Post reported.

The deal is complex, with 20 limited partners involved, though that's still five under the max allowed.

Harris and one his partners, Mitchell Rales, met with the committee for more than two hours.  

Besides Rales, NBA legend Magic Johnson, former Google CEO Eric Schmidt and beer billionaire Alejandro Santo Domingo are among the partners.

What's next: The finance committee still has to approve Harris' offer, then it would go to an owner vote, in which 24 would need to vote yes. 

Of note: Current Commanders owner Dan Snyder first announced the deal with Harris for $6.05 billion deal last month.

Last year, when the Denver Broncos sold to Walmart heir Rob Walton, the deal was announced in June. The owners approved the sale two months later.

What they're saying: "We're not done yet," Indianapolis Colts owner Jim Irsay said yesterday. "But we're making progress. ... It was a good meeting."

Washington Commanders sale could be completed next month

3. Harris moves forward with Commanders

• HyperPlay, a Web3-native game launcher and aggregator of multiple game stores, closed a $12m Series A round co-led by Griffin Gaming Partners and Bitkraft Ventures. https://axios.link/3MWbfHo

• BuzzFeed is exploring a potential sale of Complex Networks, per The Information. https://axios.link/3WRJEM5

4. Deal flow

• Carrie Lozano was named president and CEO of Independent Television Service. https://axios.link/3IZdCrC

• The Los Angeles Times plans to cut 74 positions, affecting full-time and temporary staffers and amounting to about 13% of its newsroom. https://axios.link/3qumPC3

5. Movin' on up (or out)

📺 Amazon plans to add an ad-supported tier to Prime Video (Axios)

"It's unclear when an ad-supported tier would roll out. But unlike rival Netflix, which just launched its own last year, Amazon already has a well-established advertising team and advertising video products that can help inform its efforts," Sara and Hope King write.

🥊 Dozens of Hollywood business managers sue to invalidate non-competes (THR)

"NKSFB, one of the most prominent business management firms in Hollywood and the largest in the country, is asking an L.A. judge to invalidate non-competes for dozens of business managers. They claim their parent company, Focus Financial Partners, is trying to evade California law and illegally bar them from pursuing their careers if they leave," Ashley Cullins writes.

🎙️ Spotify shifts podcast strategy to make exclusives available on other platforms (Bloomberg)

"Spotify is in talks to make the popular podcasts 'Armchair Expert' and ''Anything Goes' available on other streaming platforms, reversing its strategy in order to attract more listeners and boost revenue for the shows," Ashley Carman and Lucas Shaw write. 

6. Channel surfing

Illustration of a TV color test screen in the shape of a wave.

Tribeca Festival kicked off yesterday with a ceremony honoring its cofounder, Robert De Niro, where he received a key to the city and news of a three-day celebration this fall called "De Niro Con," Kerry writes.

At an intimate, star-packed event, Tribeca Enterprises CEO Jane Rosenthal, director Martin Scorsese and New York Mayor Eric Adams spoke fondly of the actor, who turns 80 this year, and of the film festival he helped launch in 2002. 

"Tribeca Festival is an indomitable institution, and it's a beacon," Scorsese said. "Tribeca itself — as opposed to when I was here in the early '80s — is the most vibrant, alive location. It’s the place to be and it's going to continue to grow."

"It's a treat to see so many new and old friendships tonight," De Niro said. "I'm honored to accept the recognition on behalf of my 8.5 million neighbors."

Of note: Mark Ruffalo was quite punctual to the pre-ceremony cocktail party. Matt Damon stood in the back corner and had several discussions about the ongoing writers strike. Zazie Beetz agreed to sign some photos outside. 

Other guests included the team behind "Kiss the Future," a documentary on the siege of Sarajevo that opened the festival last night. Brendan Fraser attended the screening, whom Kerry admittedly gasped at and then smiled to as they exited the theater together. 

🎥 1 fun thing: Tribeca opening night

Actor Robert De Niro, New York Mayor Eric Adams, Director Martin Scorsese and Tribeca Enterprises CEO Jane Rosenthal stand side by side onstage together in front of a packed crowd

Actor Robert De Niro, New York Mayor Eric Adams (partially obscured), director Martin Scorsese and Tribeca Enterprises CEO Jane Rosenthal. Photo: Kerry Flynn/Axios

🗣️ Quote of the day: "It's absolutely conceivable that the streaming subscription model is the crypto of the entertainment business," director Steven Soderbergh told Vulture.

@tim_bays: "Never Have I Ever" on Netflix. Marooned in a Jersey hotel room for the next few weeks while our house gets finished, welcoming any TV recs! 

@kerrymflynn: Off to Ireland for a wedding and then Lisbon for a quick vacation. Next time you hear from me, I'll be in Cannes. Say hi if you're there!

✏️ Thanks to Michael Flaherty for editing and Brad Bonhall for copy editing this newsletter.

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June 08, 2023

1 big thing: Value by half