Yankees, Amazon Weigh Bid for YES Network -- WSJ
29 Dezembro 2018 - 6:02AM
Dow Jones News
Baseball team has also discussed joining with Sinclair to bid
for the sports network
By Joe Flint and Anupreeta Das
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 (December 29, 2018).
The New York Yankees are in talks with Amazon.com Inc. and
broadcaster Sinclair Broadcast Group Inc. about partnering to bid
for the team's regional sports network YES, according to people
familiar with the matter.
The Yankee Entertainment and Sports Network LLC, which carries
Yankee baseball and Brooklyn Nets basketball, is among the 21st
Century Fox Inc. assets that Walt Disney Co. is required to sell
for the government to approve its purchase of the majority of the
company.
The Yankees own 20% of YES and have first dibs on acquiring the
remaining 80%. The team has been talking to a variety of potential
partners to purchase the network, for which Disney is seeking a
valuation of $5 billion to $6 billion, people familiar with the
matter said.
The talks are still in early stages and a partnership with
either Amazon or Sinclair isn't guaranteed, executives close to
matter said.
The Yankees have also approached cable operator Altice USA,
which has systems in the New York City region, about joining the
team's effort to acquire 80% of YES, people with knowledge of the
matter said.
As the primary TV home for one of the most popular franchises in
the number-one media market, YES is seen as one of the most
valuable sports properties in the country.
For Amazon, a stake in YES would give it entry into another
realm of the sports business. It already streams National Football
League games on Thursday nights live on its Prime platform and has
talked with other leagues in recent years about other partnerships
to widen its subscription media offering.
Should it join with the Yankees, Amazon isn't likely to
immediately begin streaming games on its own platforms, a person
close to the team said. In addition, Major League Baseball
restrictions would likely prohibit Amazon from streaming games
outside the Yankees market. Furthermore, the MLB's streaming deals
with the bulk of regional sports networks expired after this season
and needs to be renegotiated, which could also complicate potential
streaming opportunities for Amazon.
In another possible hurdle for Amazon, pay-TV distributors that
currently carry Yankee games -- including Altice, Charter
Communications Inc., Comcast Corp. and DirecTV -- would likely balk
at games being carried by the retail and streaming giant as
well.
The private-equity firm RedBird Capital Partners LLC is working
closely with the Yankees and has been in discussions with the
Ontario Teachers' Pension Plan and Abu Dhabi state fund Mubadala
Investment Co. about investing in YES, according to a person
familiar with the matter. RedBird managing partner Gerry Cardinale,
a former Goldman Sachs Group Inc. banker who led the bank's earlier
investment in YES, sits on the network's board.
Rupert Murdoch's media empire acquired a majority stake in YES
through two transactions, in 2012 and 2014, that valued the network
at more than $3 billion, The Wall Street Journal reported at the
time. The sellers included Goldman and Providence Equity
Partners.
Fox also owns 21 other regional sports channels in major markets
across the country, including Los Angeles and Detroit. The other
outlets, taken together, have been valued at more than $15 billion
by the sellers.
21st Century Fox and the Journal's parent News Corp share common
ownership.
Sinclair's interest in YES was earlier reported by Fox Business
Network.
Sinclair is also interested in the 21 regional channels and is
working with the private-equity firm Blackstone Group LP on a bid
for them, people close to the matter said. Baltimore-based
Sinclair, which is a large owner of local TV stations, has said it
is interested in expanding further into the cable business through
local sports networks.
Other suitors for the networks beyond private-equity firms
include Major League Baseball itself, Commissioner Rob Manfred has
said. The "New Fox" company that will be comprised of assets Disney
doesn't acquire from 21st Century Fox is also considering a bid for
some or all of the channels, people close to the process said.
--Miriam Gottfried contributed to this article.
Corrections & Amplifications Cable operator Altice USA is an
independent company, following its separation from Altice NV this
year. An earlier version of this article incorrectly said it was a
unit of Altice NV. ( Dec. 28, 2018)
Write to Joe Flint at joe.flint@wsj.com and Anupreeta Das at
anupreeta.das@wsj.com
(END) Dow Jones Newswires
December 29, 2018 02:47 ET (07:47 GMT)
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