Sinclair to Buy Sports Networks From Disney -- WSJ
May 04 2019 - 3:02AM
Dow Jones News
By Maria Armental
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (May 4, 2019).
Sinclair Broadcast Group Inc. has reached a deal it valued at
$10.6 billion to buy 21 regional sports networks from Walt Disney
Co., the companies said Friday.
The purchase price would be $9.6 billion after adjusting for
minority equity interests and includes a $864 million termination
fee payable to Disney, Sinclair said.
The sports networks were part of Disney's $71.3 billion
acquisition of Fox's major entertainment assets. Disney agreed to
sell them to pave the way for that deal's approval.
In 2018, the regional sports networks portfolio had $3.8 billion
in revenue.
The networks would be acquired, subject to approval from the
Justice Department, by a newly formed, wholly-owned subsidiary of
Sinclair called Diamond Sports Group LLC.
Comedian-turned-media-entrepreneur Byron Allen will be an equity
and content partner in RSN Holding Company, Diamond's indirect
parent.
The Wall Street Journal reported Thursday that the companies had
struck a deal for the 21 networks and that Sinclair had separately
partnered with the New York Yankees to acquire the YES Network,
another of the networks once controlled by Fox.
The YES Network sale, which hasn't been completed but would be
valued at $3.45 billion, also includes Amazon.com Inc. as a
partner, the Journal reported.
Other suitors for the regional sports networks included Liberty
Media Corp. and Big 3 Basketball LLC, whose management includes
entertainment executive Jeff Kwatinetz and rapper and actor Ice
Cube.
Joe Flint contributed to this article.
Write to Maria Armental at maria.armental@wsj.com
(END) Dow Jones Newswires
May 04, 2019 02:47 ET (06:47 GMT)
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