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E-commerce giant Amazon.com Inc. (NASDAQ:AMZN) is investing more in the world of sports media rights, a move that follows the success of its National Football League Thursday night football games.
What happened: As previously rumoredAmazon comes to the rescue Diamond Sports Groupwhich is the largest US regional sports network operator.
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Supported by parent company Sinclair, Inc. (NASDAQ:SBIG), Diamond Sports is seeking to emerge from bankruptcy.
Amazon is buying a minority stake in Diamond Sports in a deal and will become the primary partner for consumers to purchase streaming services for regional sports networks under the deal, as reported by the Hollywood Reporter.
The deal with Amazon calls for Sinclair to make a $495 million cash payment to Diamond Sports Group, settling an existing dispute. The agreement states that Sinclair will “settle ongoing litigation between the companies and other named defendants.”
Sinclair will provide management and transition services to support Diamond’s reorganization and separation of Sinclair’s operations.
The Amazon bailout helps satisfy creditors’ restructuring efforts and “provides a framework for a reorganization plan that would allow Diamond to emerge from bankruptcy as a going concern and continue operations.”
Regional sports channels owned by Diamond Sports were previously known as Fox Sports Networks. The company was sold The Walt Disney Company (NYSE:SAY) as part of its repurchase on the 21stst Century Fox and initially valued at $9.6 billion.
Related link: Amazon scores with NFL, Thursday Night Football: Is an NBA special next?
Why it’s important: Diamond is the largest regional sports network operator and covers 11 MLB teams, 15 NBA teams and 11 NHL teams.
“Customers will be able to access all local DTC content, including live MLB, NBA and NHL games, as well as pre- and post-game programming, for teams for which Diamond retains DTC rights, through Prime Video channels,” the company said.
Amazon will release pricing and availability details soon.
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Diamond’s rights to various teams could change, particularly as more teams challenge unpaid dues and given Diamond’s recent bankruptcy filing.
Bally Sports’ current MLB teams are the Atlanta Braves, Cincinnati Reds, Cleveland Guardians, Detroit Tigers, Kansas City Royals, Los Angeles Angels, Miami Marlins, St. .Louis of the Milwaukee Brewers, Tampa Bay Rays and Texas Rangers.
Diamond and the NBA are working on a deal to keep 15 NBA teams on Bally Sports through the end of the 2023-24 season. NBA teams with current deals on Bally Sports are Atlanta Hawks, Charlotte Hornets, Cleveland Cavaliers, Dallas Mavericks, Detroit Pistons, Indiana Pacers, Los Angeles Clippers, Memphis Grizzlies, Miami Heat, Milwaukee Bucks, Minnesota Timberwolves, New Orleans Pelicans , Oklahoma. City Thunder, Orlando Magic and San Antonio Spurs.
NHL teams featured on Bally Sports include Anaheim Ducks, Carolina Hurricanes, Columbus Blue Jackets, Dallas Stars, Detroit Red Wings, Florida Panthers, Los Angeles Kings , Minnesota Wild, Nashville Predators, Phoenix Coyotes, St. Louis Blues and Tampa Bay Lightning.
Benzinga previously reported that Amazon is eager to acquire national streaming rights for NBA games as part of the upcoming renewal deal. The company already owns the rights to “Thursday Night Football” with the NFL and recently secure NASCAR content in a new agreement.
Amazon is also an investor in YES Network, the media home of the New York Yankees and Brooklyn Nets.
News of Amazon’s interest in Diamond Sports’ streaming rights comes as streaming rivals like Netflix Inc. (NFLX) have been more aggressive in bidding for and securing sports media rights for live events and leagues.
Amazon’s NFL rights have been successful in increasing Prime Video subscriptions and achieving high viewership. The company landed 11 spots among the top 100 primetime broadcasts of 2023, with six Thursday Night Football games ranked among the 50 most-watched primetime events in the United States in 2023.
With streaming control over regional MLB, NBA and NHL games as well as its NFL rights deal, Amazon now covers content from all four major North American sports leagues.
SBGI, AMZN Price Action: Shares of Sinclair Inc. rose more than 14% to $15.60 on Wednesday, compared with a 52-week trading range of $9.39 to $22.41.
Amazon shares are down 1.3% at $151.15, compared with a 52-week trading range of $88.12 to $157.17.
Photo: Shutterstock
Options 101: The Beginner’s Guide
Want to become an options master? In his free report, options expert Nic Chahine will give you access to the four foolproof tips for beginners, the secret to 411% gains with options, and his proven “blueprint” for success. Get your free copy of Options 101: The Beginner’s Guide ASAP.
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