Warner Bros. Entertainment is seeking a new majority owner for its jointly owned The CW Network, according to media reports.
The Burbank broadcaster is being put on the block by Warner Bros. and ViacomCBS, which co-own it.
Mark Pedowitz, chief executive of The CW, confirmed that the network was for sale in a memo to staffers on Thursday that was obtained by Deadline, the online entertainment industry news site.
“First, as many of you are aware, over the past year or so, this transformative time in our industry has led to a series of business activity across media and content companies,” Pedowitz said in the memo. “Given that environment right now, ViacomCBS and Warner Bros. are exploring strategic opportunities to optimize the value of their joint venture in The CW Network.
“It’s too early to speculate what might happen, but we promise to keep you updated as we learn more,” Pedowitz continued in the memo.
Started in 2006 as a replacement for the WB and UPN networks, The CW caters to young adults with such programs as “Riverdale,” “All American” “Gossip Girl” and “Jane the Virgin.”
The network’s business model has worked because of its unique setup, being co-owned by two major studios that supply all of its scripted programming. While the CW has never been profitable as a stand-alone entity, it has created value for its studio parents, providing U.S. broadcast distribution for shows that they can then exploit internationally and on streaming, according to the Deadline story on the potential sale.
Nexstar Media Group, Inc., the network’s largest affiliate group, is reported to be a leading bidder in The CW, according to Deadline, which added that sources caution that conversations with multiple suitors are in exploratory stages and no deal is imminent.