Sat. Apr 20th, 2019

Fox Considering Bid to Buy Back RSNs

An article at TheInformation.com cites three sources has having knowledge of Fox’s desire to buy back the regional sports networks it sold to Disney as part of last month’s $71.3 billion deal that included a number of 21st Century Fox entertainment assets. Disney has been ordered to sell of the RSNs by the Department of Justice.

Earlier this month Bloomberg News reported that the 22 regional sports networks have drawn interest from content providers, venture capital groups, and sports agencies. The networks have been valued at between $15 and 20 billion if sold as a package.

They’re among the few groups of regional sports channels that are carried not only on cable and satellite services but on newer “skinny bundle” streaming services such as DirecTV Now and Sling TV. MoffettNathanson estimated earlier this year the channels earn about $2 billion a year before interest, taxes, depreciation and amortization.

Rupert Murdoch and other Fox leaders have not made a decision on whether or not to bid. The article from TheInformation.com says that the network does see the value lost by no longer having the RSNs to pair with FS1 and Fox’s NFL coverage.

The Department of Justice has ordered Disney to sell off the FOX RSNs within 90 days of the deal between the two companies being completed. The deal still has some international hurdles to clear before that happens.

 

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