By Sinclair Broadcast Group, Inc.
Sinclair Broadcast Group and The Walt Disney Company have announced the completion of the previously announced acquisition by Sinclair of the equity interests in 21 Regional Sports Networks (the “RSNs”) and Fox College Sports, which were acquired by Disney in its acquisition of 21st Century Fox.
The transaction ascribed a total enterprise value to the RSNs equal to $10.6 billion, which, after adjusting for minority interests, reflects an aggregate purchase price of $9.6 billion. The aggregate purchase price is subject to certain adjustments.
The RSN portfolio, which excludes the YES Network, is the largest collection of RSNs in the marketplace today, with an extensive footprint that includes exclusive local rights to 42 professional teams consisting of 14 Major League Baseball teams, 16 National Basketball Association teams, and 12 National Hockey League teams.
The acquisition received the approval of the U.S. Department of Justice. Last year, Disney and 21st Century Fox entered into a consent decree with the Department of Justice that allowed Disney’s acquisition of 21st Century Fox to proceed while requiring the subsequent sale of the RSNs.
The RSNs were acquired via a newly formed, indirect subsidiary of Sinclair, Diamond Sports Group. Byron Allen has agreed to become an equity and content partner in a newly formed indirect subsidiary of Sinclair and an indirect parent of Diamond (“RSN Holding Company”).
Allen, who bought The Weather Channel in 2018, is the founder, chairman, and chief executive officer of Entertainment Studios, a global media, content and technology company.
The aggregate purchase price, transaction costs, and an additional cash amount contributed to Diamond was funded through a $1.4 billion cash contribution from Sinclair, $1 billion of preferred equity issued by a parent company of Diamond (also an indirect subsidiary of Sinclair), a $3.3 billion secured term B loan facility entered into by Diamond, and $3.1 billion of secured notes and $1.8 billion of senior notes issued by Diamond and Diamond Sports Finance Company.
The RSN brands acquired by Sinclair are: Fox Sports Arizona, Fox Sports Detroit, Fox Sports Florida, Fox Sports Sun, Fox Sports North, Fox Sports Wisconsin, Fox Sports Ohio, SportsTime Ohio, Fox Sports South, Fox Sports Carolina, Fox Sports Tennessee, Fox Sports Southeast, Fox Sports Southwest, Fox Sports Oklahoma, Fox Sports New Orleans, Fox Sports Midwest, Fox Sports Kansas City, Fox Sports Indiana, Fox Sports San Diego, Fox Sports West, and Prime Ticket. Also included in the acquisition is Fox College Sports.
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Previously in Sinclair:
* Item: Former Trump Aide Joins Sinclair.
* Trump’s FCC Chair Continues To Shaft The Public, Offer Major Handouts To Big Media.
* Trump-Friendly Sinclair’s Takeover Of Tribune TV Stations Brought To You By Trump’s FCC Chairman.
* Jonathan Pie, TV Reporter! Make The Air Fair.
* ‘Maybe The Worst FCC I’ve Ever Seen.’
* A Pair Of Decades-Old Policies May Change The Way Rural America Gets Local News.
* Tribune’s Disastrous Sale To Sinclair.
* Lawmakers Demand Answers About FCC’s Favoritism Toward Sinclair.
* Can Anyone Stop Trump’s FCC From Approving A Conservative Local News Empire?
* Sinclair’s Flippant FCC Ruling.
* FCC Presses Sinclair For Answers On Tribune Merger.
* Trump FCC Eliminates Local Broadcast Main Studio Requirement In A Handout To Sinclair That Will Harm Local Communities.
* Trump’s FCC Chairman Announces Plan To Scrap Media Ownership Limits Standing In Way Of Tribune-Sinclair Mega-Merger.
* Lisa Madigan et al. vs. Sinclair-Tribune.
* Local TV News Is About To Get Even Worse.
* Trump’s Secret Weapon Against A Free Press.
* With Massive Handouts To Sinclair, FCC Clears Path To New Wave Of Media Consolidation.
* Trump FCC Opens Corporate Media Merger Floodgates.
* FCC Wraps New Gift For Sinclair.
* FCC Inspector General Investigating Sinclair Rulings.
* Behind Sinclair’s ‘Project Baltimore.’
* Don’t Be Fooled By Sinclair’s Shell Games.
* Free Press Sues The FCC For Dramatic Reversal Of Media Ownership Limits That Pave Way For Media Mergers.
* Thanks, Tribune Media, All You Did Was Weaken A Country.
* Sinclair-Fox Station Deal Enabled By FCC Is Dangerous For Democracy.
* The Sinclair Sham.
* Debunking The Broadcast Industry’s Claims About Sinclair’s Tribune Takeover.
* Surprise FCC Move Maims Sinclair-Tribune Merger.
* Sinclair Makes Last Ditch Effort To Salvage Tribune Merger. Will FCC Bite?
* Sinclair-Tribune Deal On Life Support.
* Sinclair-Tribune Deal Is Dead.
* Tribune Media Lawsuit: Belligerent Sinclair Blew A Sure Thing.
* Tribune Executives Will Get Bonuses After Sinclair Deal Collapses.
* FCC Investigating Sinclair’s Lies In Failed Attempt To Take Over Tribune Media.
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See also:
* Sinclair Broadcast Group Solicits Its News Directors For Its Political Fundraising Efforts.
* FCC Plans To Fine Sinclair $13.3 million Over Undisclosed Commercials.
* Sinclair’s New Media-Bashing Promos Rankle Local Anchors.
* Sinclair’s Latest “Must-Run” Segment Defends Tear-Gassing Refugees.
* Nexstar-Tribune Deal Is Bad News For Communities And Local Media.
* Dear FCC: Further Weakening Media-Ownership Limits Isn’t The Answer.
* Free Press To FCC: Revoke Sinclair’s Licenses If They Lied To You.
* Sinclair Broadcast Group To Acquire 21 Regional Sports Networks From Disney At A Valuation Of $10.6 Billion.
* Sinclair’s Cubs Network Names Complicit GM.
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Comments welcome.
Posted on August 28, 2019