Sinclair to Acquire Sports Networks From Disney

Expect to hear official announcement on May 3 of Sinclair Broadcast Group's deal to acquire 21 regional sports networks from Walt Disney for $10 billion. The price tag for the regional sports networks is less than some industry observers initially anticipated. When Disney began preparing to sell the networks, the price tag likely bidders and industry analysts forecast was between $16 billion and $20 billion. Sinclair’s deal is for 21 of the 22 Fox sports networks. The crown jewel, YES, which is home to New York Yankees broadcasts, reportedly is being purchased by Sinclair and Amazon.com for $3.5 billion. 

Sinclair sees value in local sports programming as it seeks to increase its content holdings. The company already owns the Tennis Channel and is launching its own regional sports channel in Chicago in partnership with the Chicago Cubs. Disney acquired the sports channels in March as part of its $71-billion takeover of much of 21st Century Fox. But Disney wasn’t allowed to keep them. In 2018, the US Justice Department demanded that Disney sell the regional sports networks as a condition of its takeover of Fox. Antitrust regulators were concerned that Disney, which already owns ESPN, would have too much sway in the TV sports market. The government gave Disney 90 days to unload the channels after it acquired them. The clock started ticking at the close of the Disney-Fox transaction.