Sinclair Seeks More Local Sports Networks -- WSJ
August 24 2019 - 3:02AM
Dow Jones News
By Joe Flint
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 (August 24, 2019).
Sinclair Broadcast Group Inc.'s appetite for regional sports
networks won't be satiated with its $9.6 billion purchase of Walt
Disney Co.'s 21 channels, which closed Friday after getting the
green light from the Justice Department.
In an interview, Sinclair Chief Executive Chris Ripley said the
company would be interested in acquiring more properties,
particularly the four regional sports outlets that AT&T Inc.
owns in Seattle, Colorado, Pittsburgh and the Southwest. AT&T
is looking to sell the channels, a person familiar with the matter
said.
"We of course would be very interested in looking at those and
filling out our regional sports network footprint," Mr. Ripley
said.
The 21 channels Sinclair acquired are the Fox Sports networks of
which Disney took control when it acquired the bulk of 21st Century
Fox's entertainment assets for $71.3 billion. Disney, which is the
parent company of sports-programming juggernaut ESPN, agreed to
spin off the regional channels in return for government approval of
the deal.
Sinclair separately partnered with the New York Yankees to
acquire the YES Network, another sports channel previously
controlled by Fox, for $3.47 billion. Other partners on the YES
purchase are Amazon.com Inc., private-equity firms RedBird Capital
Partners LLC and Blackstone Group Inc., and Abu Dhabi
sovereign-wealth fund Mubadala Investment Co.
The YES Network sale is also expected to receive Justice
Department approval and close before the end of the month, people
familiar with the matter said. Sinclair's role in the YES operation
will be to handle distribution for the network, a person close to
the Yankees said.
Mr. Ripley said the Disney deal is "the culmination of a
five-year push to get more exposure in sports." Besides the 21
networks and its YES stake, Sinclair is also launching a sports
channel in Chicago in partnership with the Cubs baseball team. It
also owns the Tennis Channel.
Sinclair, Mr. Ripley said, now derives 75% of its revenue from
local sports and news -- which he described as "the sweet spot of
where you want to be in the streaming wars."
A priority for Sinclair will be to try to negotiate a deal with
satellite broadcaster Dish Network Corp., which dropped the Fox
regional sports channels last month in a dispute over pricing.
Despite Sinclair's large local news operation, Mr. Ripley said
there are no plans to add any nonsports related content to its
newly acquired networks.
There has often been speculation that Sinclair might try to
launch its own national news service. Mr. Ripley said the company's
priority continues to be serving its local markets, but added he
never rules anything out.
"If there was the right opportunity we might do that," he
said.
Drew FitzGerald contributed to this article.
(END) Dow Jones Newswires
August 24, 2019 02:47 ET (06:47 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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