According to the article, the sports assets would be attractive to Rupert, because he would be buying them back at a discount to what he sold them to Disney. And there would be Tax Benefit too......Why sell them to buy them back? I'm confused or were they obliged to sell them in the original deal?
The whole concept last week that Murdoch was going to get a sweet discount on these channels always seemed far fetched.Sports Channels Draw Interest From Private Equity, 'New Fox' and Ice Cube
10/30/2018 | 05:45am EDT
By Joe Flint, Andrew Beaton and Miriam Gottfried
Big media companies, sports teams, private-equity firms and a rapper are among those kicking the tires of nearly two dozen regional sports channels that Walt Disney Co. is divesting as part of its $71.3 billion purchase of 21st Century Fox assets.
The 22 channels include marquee properties in New York and Los Angeles. Guggenheim Securities valued the regional networks at $25 billion, but some likely bidders and industry observers say they are more likely to fetch between $16 billion to $20 billion, depending on how they are packaged and sold.
"There's never been an instance where a large group of these [regional sports networks] have been sold all at once," said sports-media consultant Lee Berke.
Initial bids on the channels are due Nov. 8. Potential suitors include private-equity firms Apollo Global Management LLC, Blackstone Group LP, KKR & Co. and Providence Equity Partners LLC, people close to the sale process said.
Private-equity firm Silver Lake is looking at the networks in partnership with its portfolio company, talent agency Endeavor LLC, one of the people said. The large television station owner Sinclair Broadcast Group Inc. has said publicly it is interested in the channels.
The "New Fox," the company that will comprise the assets Disney doesn't acquire from 21st Century Fox, including the Fox broadcast network and Fox News Channel, is also considered a serious contender for the sports channels, the people close to the process said.
Disney's deal for the 21st Century Fox assets implied a premium valuation for the sports networks, after a bidding war with Comcast Corp. drove up the deal's overall price. A stand-alone sale of the networks could now draw a lower price, some analysts and people close to the process said, raising the prospect that Fox could buy them back at a discount.
People close to Disney said it expects to get a premium.
Rapper and actor Ice Cube has emerged as the face of one bid, teaming up with investors from his "Big 3" basketball league and others in a minority-owned conglomerate, according to people familiar with the bid.
A number of sports-team owners are considering submitting offers for channels in their specific markets, according to people familiar with their thinking. Tech companies are also in the mix.
The whole concept last week that Murdoch was going to get a sweet discount on these channels always seemed far fetched.
I can’t imagine Disney not getting a tidy profit on these channels.
Very interesting..... Probably content which would not be included in a "Disney" OTT channel.Here's a story I found really interesting, although more about the UK, but the BBC which we publicly fund have done a deal with 20th Century Fox for all future content from FX to be exclusive on the BBC.
Currently FX has its own dedicated channel on SKY (now owned by Comcast) so I wonder if this was in discussions before Disney was on the scene. I wonder if Disney are going to be pulling what they can off from SKY.
https://thefly.com/landingPageNews.php?id=2815731China's State Administration for Market Regulation is on track to complete its antitrust review of Disney's (DIS) acquisition of 21st Century Fox (FOXA) assetsm, Dealreporter reports, citing two sources familiar with the matter. The agency is expected to approve the transaction without conditions, sources told Dealreporter.
Yeah all of Disney's cable nets are carried by Comcast and they have generally had good relationships with the Carriers and have been aggressive to get as many of their channels as possible on the OTTP providers.Thanks for posting the article.
It's s big choice for Disney, do they go bold and pull ALL of their content from SKY and go direct and hope to reap the rewards or take a big pay check with Comcast will probabaly pay.
SKY had to throw £1 billion to the Discovery network last year because they threatened to also pull their content from SKY.
If Disney does go bold and leave SKY, it will be a huge piece which will start the collapse of PayTV in the U.K. Which is probabaly needed.
How does it work in the US? I assume all the Disney, ESPN stuff is still currently on Comcast Cable?
Or.... they sign a deal, but eliminate the exclusivity to Sky (allowing them to also stream the same programs)..... Based on the earlier article sent by Robbiem, this appears to be a regulatory issue in Europe and would allow Disney to provide some relief.....Yeah all of Disney's cable nets are carried by Comcast and they have generally had good relationships with the Carriers and have been aggressive to get as many of their channels as possible on the OTTP providers.
I suspect that Disney will keep most of their programming on SKY but limit certain things or seperate streaming from linear rights. Disney is very much trying to bake their own streaming cake, while still getting a large portion of the linear cable/satellite pie.