Yankees Buy Back the Rest of YES Network From Disney for $3.47 Billion

Disney has finalized its sale of the YES Network, which will be repurchased by Yankee Global Enterprises, the parent company of the New York Yankees.

The deal is for the remaining 80% stake that the Yankees didn’t already own, and is valued at $3.47 billion. Amazon is a partner in the transaction, along with Sinclair Broadcast Group. On Aug. 23, Sinclair closed a separate deal with Disney for the remaining 21 Fox regional sports networks that Disney was required to sell as part of its acquisition of 21st Century Fox’s film and TV assets.

The Yankees will be the majority shareholder with a 26% stake, while Sinclair will own 20%. Amazon has a 15% stake with the option to increase that in the coming years. Additional equity investments were provided by RedBird Capital, funds managed by Blackstone’s Tactical Opportunities business, and Mubadala Capital.

Also Read: Sinclair Closes Acquisition of Fox Regional Sports Networks From Disney

With the transaction, Disney has now sold off all 22 Fox regional sports networks it was required to divest as part of its approval from the Justice Department to rubber stamp its Fox deal. The YES Network is the TV home of the Yankees and the NBA’s Brooklyn Nets and was considered the crown jewel of the Fox RSNs that Disney acquired.

Back in 2012, Yankee Global Enterprises sold a 49% stake to News Corp — before it spun off 21st Century Fox — who then upped their stake to 80% in 2014.

“This transaction brings the YES Network and all of its popular programming even closer to the organization that inspired its very development,” said Hal Steinbrenner, CEO, Yankee Global Enterprises. “Along with our partners, we look forward to greatly expanding the way that sports content is delivered and consumed by fans everywhere.”

The Yankees, Sinclair and Amazon will collectively work to broaden the distribution of the New York/New Jersey-area channel. Sinclair is the largest owner of local TV stations (170) in the country, and also owns the Tennis Channel and is launching a regional sports network with the Chicago Cubs. Jon Litner has signed a new contract to remain in his existing role as President of the YES Network.

Also Read: Disney Layoffs Continue With Nearly 60 More Jobs Cut in Home Entertainment, TV Distribution

New York Yankees president Randy Levine was light on the specifics of how the three companies will work together, most notably Amazon, when it comes to distribution. In March, multiple outlets including the AP and New York Times reported that Amazon would get some kind digital rights as part of the deal.

We’ll be developing a whole bunch of programs that are in the works as we speak. Amazon has got great expertise in the technological world and the digital world,” Levine said during a conference call with the media. “The specifics will come in the future as we start to roll out new programs.” The digital rights for the YES Network are currently run through Fox Sports.

Amazon has been seeking to become more of a player in sports rights. The retail giant is heading into its third season as the streaming partner for the NFL’s “Thursday Night Football” which airs on Fox.

9 Biggest Billion-Dollar Entertainment and Media Deals in 2017 (Photos)

While all eyes were on AT&T's $85 billion acquisition of Time Warner, announced in late 2016 but facing an antitrust lawsuit from the Justice Department, there were plenty of other megadeals in media, tech and entertainment that kept investment bankers busy in 2017.

Here are some of the biggest deals of the year:
Getty Images
Disney to acquire most of 21st Century Fox for $52.4 billion

In a massive deal that could change the entertainment industry even more than AT&T-Time Warner, Disney announced plans to acquire Fox's film and TV studios and much of its non-broadcast television business, including regional sports networks and cable networks such as FX, FXX and Nat Geo. Disney would also pick up Fox’s stake in the European pay-TV giant Sky — and be better positioned to win regulatory approval to complete the acquisition of the 61 percent of the company it does not already own.
Discovery Communications agrees to buy Scripps Networks Interactive for $11.9 billion

The merger of two cable powerhouses brings together channels including Discovery, Science, Food Network and HGTV – and could give the combined company a stronger position as pay-TV continues to migrate to the internet.
Discovery/Scripps
Sinclair Broadcast Group agrees to buy Tribune Media for $3.8 billion

This deal, if approved, would give conservative-leaning Sinclair control of 223 stations in 108 markets, including 39 of the top 50, covering 72 percent of households in the country. And it's only possible under rule changes implemented by new FCC Chairman Ajit Pai.
Sinclair/Tribune
Cineworld offers to buy Regal Cinemas for more than $3 billion

After a string of movie theater mergers last year, the sector has quieted down -- along with the box office. And while this isn’t yet a done deal -- or even an accepted offer -- British chain Cineworld made a late November bid of $23 a share for the U.S.’s No. 2 cinema chain.
Cineworld/Regal
Meredith Corp. acquires Time Inc. for $2.8 billion

The magazine megadeal is a sign of changing times in the publishing industry, with the owner of esteemed brands like Time, Fortune and Sports Illustrated selling to the parent of Better Homes and Gardens and Country Life – backed by $650 million from big-time conservative donors the Koch brothers.
Meredith/Time
Verizon acquires Straight Path Communications for $2.3 billion

Straight Path may not be a household name, but it was the subject of a bidding war between AT&T and Verizon. The company is one of the largest owners of millimeter wave spectrum, seen as key to the buildout of 5G networks, which should power much faster mobile internet -- better for video -- in the near future.
Verizon/Straight Path
Disney buys the rest of BAMTech for $1.6 billion

The Mouse House jumped into internet TV in a major way in 2017, announcing upcoming Disney and ESPN-branded streaming services and acquiring the rest of streaming tech company BAMTech to power those products.
Disney/BAMTech
Entercom buys CBS Radio for $1.5 billion

CBS Radio was intended to be spun off from its broadcast parent in an IPO, but instead it was scooped up by a competitor. The combined company, now the second largest radio business in the country, owns and operates 244 stations in 47 markets.
Entercom/CBS Radio
MGM buys the rest of Epix for $1 billion

The independent studio went all in on the pay-TV business, buying the rest of the premium cable network from Viacom and Lionsgate. And that's paid immediate dividends, as MGM's media networks division propelled it to a strong third quarter.
MGM/Epix

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Rewind 2017: Media and content consolidation continued this year

While all eyes were on AT&T's $85 billion acquisition of Time Warner, announced in late 2016 but facing an antitrust lawsuit from the Justice Department, there were plenty of other megadeals in media, tech and entertainment that kept investment bankers busy in 2017.

Here are some of the biggest deals of the year:

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9 Biggest Billion-Dollar Entertainment and Media Deals in 2017 (Photos)

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