In a recent development, Warner Bros. Discovery has announced its intention to exercise its matching rights for a package of NBA games that were originally slated for Amazon Prime Video. The company aims to continue its longstanding partnership with the National Basketball Association by securing the deal earmarked for the popular streaming platform.

Warner Bros. Discovery, in a statement, expressed disappointment that the league had decided to accept offers from other companies for the games included in their current rights package. As a result, the media conglomerate asserted its rights to match one of the offers, ensuring that fans can enjoy the unparalleled coverage of NBA games, including top-notch productions and iconic studio shows.

The company has submitted its matching paperwork to the NBA, and the league spokesperson confirmed that they are currently reviewing Warner Bros. Discovery's proposal. It is worth mentioning that Warner Bros. Discovery obtained these matching rights as part of its previous agreement with the NBA, set to expire at the end of the next season.

However, both Warner Bros. Discovery and the NBA face the dilemma of whether these matching rights extend to an all-streaming package, as Amazon Prime Video currently holds. Warner Bros. Discovery also owns its own streaming service, Max, which could potentially be used to broadcast the games. Regardless, Amazon Prime Video's vast customer base of over 200 million globally, compared to Max's approximately 100 million, may make it a more appealing option for the league.

The streaming rights in question are purportedly global, although Warner Bros. Discovery's bid is focused on securing U.S. rights only. Amazon, as a standalone company with a market capitalization of nearly $2 trillion, is perceived to be in a more advantageous position than Warner Bros. Discovery, whose market valuation has fallen to around $20 billion. Moreover, the CEO of Warner Bros. Discovery, David Zaslav, has expressed interest in pursuing mergers or partnerships, adding an element of uncertainty to the company's future.

As for the NBA, stability among its broadcast partners is paramount, and they have already secured deals with Disney and NBCUniversal for other game packages. Both Disney and Comcast boast market valuations exceeding $150 billion.

The outcome of the NBA's decision regarding Warner Bros. Discovery's matching rights is unclear. Should the league reject the matching claim, potential scenarios include Warner Bros. Discovery pursuing legal action or a settlement being reached between the two parties. It remains uncertain whether the NBA would demand higher payment from Amazon for their package.

Notably, crafting a fourth package of games appears unlikely, as discussions in the past have failed due to existing deals with Disney, Comcast, and Amazon. It is worth mentioning that these partners are set to pay more money for fewer games compared to the current agreement.

Disney's package is reportedly valued at approximately $2.6 billion per year, while NBCUniversal's deal is estimated at around $2.5 billion per year. Amazon's package, which Warner Bros. Discovery is targeting, is valued at $1.8 billion per year. The relatively lower price tag is cited as a reason for Warner Bros. Discovery's interest in exercising their matching rights.

The NBA has been mindful of consumer confusion and the proliferation of subscription services, leading them to limit the number of game packages available. Amazon plans to include NBA games as part of its Prime subscription, while Warner Bros. Discovery's Max charges an additional $9.99 per month for access to live games alongside their basic membership.

With the future landscape of NBA game broadcasting yet to be determined, both Warner Bros. Discovery and the NBA are navigating through a complex web of negotiations and competitive bids. The final outcome will shape the future of NBA game coverage and the ongoing relationship between major media entities in the sports industry.

Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.