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Amazon-led group closing in on $3.5B deal for YES Network
3 years ago  ::  Mar 08, 2019 - 3:29AM #1
Posts: 9,401
What does this mean?

Amazon-led group closing in on $3.5B deal for YES Network

Jeff Bezos is coming to New York after all.

An Amazon-led group of investors that includes the New York Yankees is ready to sign a deal to buy YES Network — one of NY’s most prominent cable sports channels — for roughly $3.5 billion, two people close to the plans told The Post.

The offer, which one person described as “imminent,” puts the online retailer in a position to control video streaming of Yankees games and Brooklyn Nets basketball games.

The bid will be for the 80 percent of YES that the Yankees don’t already own. The deal will also be backed by the Sinclair Broadcast Group, sources said.

Entertainment giant Disney is selling YES along with 21 other regional sports channels throughout the country as part of its $71 billion deal to buy Twenty-First Century Fox. Disney, which owns ESPN, needs to sell the Fox-owned RSNs to gain regulatory approval for the merger.

The YES network was valued at $3.9 billion in 2014 when Fox paid for an 80 percent stake — leaving the Yankees with the rest.

But the value of RSNs generally have been declining as cable subscribers jump ship — thanks to streaming video companies like Netflix and Amazon.

The Amazon-led group is expected to seek to offset the decline by charging fees for streamed games, a source said.If you are buying YES and understand the streaming transition … you may be buying it at a bargain,” one source said.

In the last few weeks, as the Amazon deal was solidifying, the Yankees told YES it would not renew its streaming license with the sports network, sources said.

The current license expires in roughly five years.

The Bronx Bombers have other ways to keep the price down tied to their right of first dibs on the 80 percent up for grabs.

If Disney rejects a fair market offer by The Yanks, the price would have to be hashed out in arbitration. And that could take up time Disney does not have since it needs to sell YES and the 21 other RSNs within 90 days of closing on the $71 billion Fox acquisition.

On Thursday, Disney CEO Bob Iger told shareholders the deal will close “soon.”

YES is also under contract to pay the Yankees broadcast fees until 2042. The fees currently equal around $90 million a year, a cost that will only continue to increase even if carriage rates fall — further highlighting the need for streaming revenue.

Bidders for the 21 remaining channels include a consortium led by rapper-turned-actor Ice Cube’s basketball league, Big3, as well as Major League Baseball and John Malone’s Liberty Media.

The Yankees declined comment. Amazon and Sinclair did not return calls.

3 years ago  ::  Mar 08, 2019 - 8:39AM #2
Posts: 1,272

Yea, I'm a bit confused by this...  

How does Amazon's control of streaming Yankee games work in relation to for out of market folks?  Also, does this mean if I use a streaming service like Sling tv that I will not be able to access games?  

On the other hand, if YES became a staple of Amazon Prime Video I would be pretty happy with that.


Please note:  I'm arguing against your post, not against you as a person.  I respect your right to have a different opinion even if I completely disagree with every word you wrote.
3 years ago  ::  Mar 08, 2019 - 8:46AM #3
Posts: 32,868

New York Yankees Buy Back YES Network For $3.47 Billion

The group includes Sinclair Broadcast Group; Sinclair specializes in fake news.

3 years ago  ::  Mar 08, 2019 - 8:52AM #4
Posts: 1,484

Sinclair is a malicious, controlling rextreme right wing media empire... Can't really see how they work it with Amazon... Guess it's ALWAYS about $$$$ afterall.

Life is better when the Yankees win !
3 years ago  ::  Mar 08, 2019 - 10:41AM #5
Posts: 10,102

How is Amazon not considered a monopoly?

 photo Signature small_zpsipxz034e.jpg
3 years ago  ::  Mar 08, 2019 - 11:30AM #6
Posts: 42,830

Let's all hope that if any sale effects this message board that whomever owns YES will let the message board members know ahead of time if they are going to shut this message board down.  

3 years ago  ::  Mar 08, 2019 - 12:04PM #7
Posts: 4,293

Mar 8, 2019 -- 8:08AM, Lola wrote:

FCUK AMAZON....GREEDY PIGS! I HATE Amazon... there is no end to the filthy greed of Jeff Bezzos.... he should die!

they're coming for us

3 years ago  ::  Mar 08, 2019 - 2:31PM #8
Posts: 66,015

Why Yankees fans should care about YES Network deal | Are games destined for Amazon Prime Video?

The New York Yankees are buying Disney’s ownership stake in the YES Network for $3.4 billion, according to Fox Business.

This will give the Yankees majority ownership of YES Network. Prior to the deal, the Yankees owned 20%, with the other 80% owned by Fox (and then Disney).

Disney is divesting itself of 22 regional sports networks, including YES Network, as part of its deal to acquire Fox’s entertainment assets.

According to Fox Business, the Yankees will share ownership of YES Network with “other companies including AmazonSinclair Broadcast Group, and Blackstone Group ... Amazon and Sinclair will hold the next largest ownership stakes in YES, underscoring the ability to leverage the broadcasting of Yankees games to both local markets controlled by Sinclair and through Amazon’s streaming service, these people say."

What this means for Yankees fans is that we are one step closer to having games streamed on Amazon Prime Video. Per Fox Business:

While Sinclair can broadcast Yankees games through its various stations across the country, the Yankees are hoping Amazon will stream some of the games to a national audience, though details of how that will occur are unclear. A spokesperson for the Yankees declined to comment. A spokesman for Disney declined comment.

Bidding on the other regional sports networks formerly owned by Fox will continue as Disney tries to come into compliance with federal antitrust regulations.

Under the terms of the deal, Fox, officially dubbed 21st Century Fox, Inc., will spin off some of its properties into a new company, called, appropriately enough, New Fox.

Going to New Fox will be the following assets: Fox News Channel, Fox Business Network, Fox Broadcasting Company, Fox Sports, Fox Television Stations Group, FS1, FS2, Fox Deportes and Big Ten Network.

The Department of Justice approved Disney’s $71 billion bid for 21st Century Fox in June, beating out Comcast, which had submitted a bid of $65 billion.

YES Network perennially ranks as one of the most-watched regional sports network in the country. Find YES Network on your cable/satellite/broadband provider: Verizon FiosAT&T U-verseComcast XfinitySpectrum/CharterOptimum/AlticeDIRECTVDishHulufuboTVSling.

"Leave the gun. Take the cannoli."
3 years ago  ::  Mar 08, 2019 - 5:49PM #9
Posts: 9,401

Many will be relief to hear.....An earlier story by the New York Post, which said a YES deal was imminent and cited Amazon leading the group buying YES, was incorrect. The Yankees will be the lead investors after the current deal closes in about 120 days. The partners with the Yankees are Amazon and Sinclair Broadcast Group, and investors include RedBird Capital, Blackstone, Mubadala Investment Co., Ontario Teachers’ Pension Plan and the Michael Dell fund.

In a deal that touches all the bases, the New York Yankees are buying back the YES Network for $3.47 billion. The deal will be formally announced today

Yankees viewership out paced Red Sox and Mets by a large margin.... 293,000 per local broadcast was the tops in baseball, far outpacing the figures for the New York Mets (186,000), the Boston Red Sox (159,000) and the Chicago Cubs (153,000).

Yankees Intend To Buy Back YES Network In Sale Of Fox To Disney

3 years ago  ::  Mar 08, 2019 - 6:03PM #10
Posts: 6,733

Better Amazon than Disney...

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