Sinclair Broadcast Group Inc SBGI reportedly reached a deal to buy 21 different regional sports networks from Walt Disney Co DIS, sources told The Wall Street Journal.
What Happened
Sinclair, the biggest owner of local TV stations, would become a major force in cable programming if the acquisition is finalized, WSJ's Joe Flint reported.
Disney would be selling its ownership in sports channels across major sports cities, including Los Angeles and Detroit. Disney is motivated to sell its stake as it was acquired as part of its acquisition of most of Fox's FOXA entertainment assets.
On the other side of the deal, WSJ said Sinclair recognizes the value in local sports programming and it can contribute to its content holdings.
Why It's Important
Disney was expected to collect $16 billion to $20 billion in its asset sale and Sinclair got a "great deal" as it should be able to cut costs and leverage the regional sports networks with its stations together, Patrick Crakes, a sports media consultant told WSJ.
The two sides reportedly reached a "handshake agreement" last month, but nothing has yet to be confirmed at time of publication.
Sinclair's stock traded around $43.88 per share Friday morning.
Related Links:
Guggenheim Raises Sinclair Broadcast EPS Estimate After Quarterly Print
Report: Amazon Makes A Play For Disney's Regional Sports Networks
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
