Sinclair Broadcast Group, Inc. Purchases the Fox Regional Sports Networks for $9.6 Billion USD



(Baltimore, MD and Burbank, CA) As a provider of local news, and, a beacon for meaningful journalism; the Sinclair Broadcast Group, Inc. stands on a very unique platform.  This very unique platform is also characterized by 191 television stations, in 89 television markets.  For the content creation side, the Sinclair Broadcast Group, Inc. delivers its proprietary content to viewers across various conventional media platforms.  These conventional media platforms include over the air, multi-channel video program distributors and contemporary digital platforms.  Therefore and as a result, the reference of standing on a very unique platform, is a very fitting and applicable reference.  Recently, the Sinclair Broadcast Group, Inc. announced that, it has purchased the Fox Regional Sports Networks.  The acquisition cost was revealed to be, $9.6 billion USD.  The latter is due to a business valuation, of $10.6 billion USD.  Post acquisition, the Sinclair Broadcast Group, Inc. will form a holding company that will own, the Fox Regional Sports Networks.
             The holding company, which will own the Fox Regional Sports Networks, is named Diamond Sports Group, LLC.  Diamond Sports Group, LLC is an indirect and completely owned subsidiary of the Sinclair Broadcast Group, Inc. (NASDAQ:  SBGI).  Along with this announcement, is the revelation that Byron Allen of Entertainment Studios, will have two roles in Diamond Sports Group, LLC.  The first role is equity and content partner of Diamond Sports Group, LLC.  The second role is indirect parent of Diamond Sports Group, LLC, through, Entertainment Studios.  Currently; Mr. Byron Allen is the Founder, Chairman and the C.E.O. of Entertainment Studios. 
            Returning to, the $9.6 billion dollar acquisition of the Fox Regional Sports Networks, the aforementioned are being purchased from The Walt Disney Company (NYSE:  DIS).  The latter, received the Fox Regional Sports Networks in its purchase of Twenty-First Century Fox, Inc.  Quickly after the completion of the $71 billion USD acquisition, The Walt Disney Company, put the Fox Regional Sports Networks on the open market.  The portfolio that is the Fox Regional Sports Networks is best highlighted by exclusive and local rights to 42 professional sports teams.  The aforementioned is made up of 14 Major League Baseball Teams (MLB), 16 National Basketball Association Teams (NBA), 12 National Hockey League Teams (NHL) and Fox College Sports.  Specifically; the Fox Regional Sports Networks is made up of Fox Sports Arizona, Fox Sports Detroit, Fox Sports Florida, Fox Sports Sun, Fox Sports North, Fox Sports Wisconsin, Fox Sports Ohio, Sports Time Ohio, Fox Sports South, Fox Sports Carolina, Fox Sports Tennessee, Fox Sports Southeast, Fox Sports Southwest, Fox Sports Oklahoma, Fox Sports New Orleans, Fox Sports Midwest, Fox Sports Kansas City, Fox Sports Indiana, Fox Sports San Diego, Fox Sports West and Prime Ticket.  However, the purchase doesn’t include the Yes Network.  Twenty-First Century Fox, Inc. still owns that, television network.
            To end, the completion of the acquisition is still subject to customary closing conditions.  The aforementioned, also includes approval by the U.S. Department of Justice.  The Sinclair Broadcast Group, Inc. did release a press statement.  Chris Ripley is the President and the Chief Executive Officer of the Sinclair Broadcast Group, Inc.  Through a press statement, Mr. Sinclair said the following.  “This is a very exciting transaction for Sinclair to be able to acquire highly complementary assets.  While consumer viewing habits have shifted, the tradition of watching live sports and news remains ingrained in our culture.  As one of the largest local news producers in the country and an experienced producer of sports content, we are ideally positioned to transfer our skills to deliver and expand our focus on greater premium sports programming.”  Chris Ripley also said.  “The transaction is expected to be highly accretive to free cash flow and brings consolidated net leverage to 4.7x and 5.1x through the preferred financing.  This acquisition is an extraordinary opportunity to diversify Sinclair’s content sources and revenue streams with high-quality assets that are driving live viewing.  We also see this as an opportunity to realize cross-promotional collaboration, and synergistic benefits related to programming and production.”  As previously stated, the aforementioned television media company recently announced that, it has purchased the Fox Regional Sports Networks.  The acquisition cost was revealed to be, $9.6 billion USD.  The latter is due to a business valuation, of $10.6 billion USD.  Post-acquisition, the Sinclair Broadcast Group, Inc. will form a holding company that will own, the Fox Regional Sports Networks.  Lastly, this holding company is named, Diamond Sports Group, LLC. 

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Written from Press Release
Registered Writer at
PR Newswire Association, LLC
R-Berumen28
05/08/2019

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