### Warner Bros. Discovery Faces Lawsuit from Sky UK Over Alleged Breach of TV Deal

Warner Bros. Discovery (WBD) and its CEO David Zaslav are embroiled in a new legal battle initiated by Sky UK over a contentious TV deal. This lawsuit adds to the company's ongoing challenges, including competition with the NBA and Amazon for basketball rights and delays in the launch of their Venu sports streamer.

Sky UK, owned by Comcast, filed a complaint in federal court in New York on Friday accusing WBD of failing to meet the terms of a 2019 contract. According to Sky, WBD was required to offer a minimum of four qualifying TV series per year from 2021 to 2023 but allegedly fell short of these requirements. The complaint highlights that WBD often provided fewer shows and withheld critical information necessary for Sky to evaluate the available options.

Sky's lawsuit against WBD arrives at a crucial time as long-standing HBO output deals in the UK, Italy, and Germany are set to expire in 2025. This expiration aligns with WBD's intention to launch the Max streaming service in Europe. Sky argues that WBD's actions have deprived it of valuable opportunities and financial benefits from the deal, especially concerning the planned Harry Potter TV series set to debut on HBO in 2026.

WBD's response to the lawsuit was dismissive, claiming the suit is a baseless attempt by Sky and Comcast to gain leverage in negotiations for future programming. A WBD spokesperson asserted that HBO-branded shows are critical to Sky's business, which is evident from Sky's eagerness to renew agreements. Despite the lawsuit, WBD remains committed to launching Max and the new Harry Potter series in European markets as planned.

The original 2019 deal stipulated that Sky would be presented with at least four new HBO Max original series per year from 2021 to 2025. Sky is now seeking compensatory and consequential damages and a court declaration that WBD breached this agreement. Furthermore, Sky wants WBD to immediately submit the Harry Potter Series for its consideration under the terms of their Co-Funding Agreement.

Despite the lawsuit, both companies continue to collaborate on other projects. Sky assures its customers that they will still have access to HBO shows, including "House of the Dragon," "The Last of Us," "The White Lotus," and "Euphoria," along with new releases like "Dune: Prophecy."

As the legal dispute unfolds, the outcome will likely influence the future relationship between WBD and Sky, as well as the strategic direction of their respective streaming services in Europe.