Amazon has reportedly bid on a package of 22 regional sports networks in its latest and boldest foray into live sports.
The RSNs were owned and operated by Fox prior to a $71 billion sale of assets to Disney last summer. In order to complete the sale, Disney reached an agreement with the Justice Department to sell the RSNs to avoid antitrust litigation. CNBC reported Tuesday that Amazon was one of six entities to place a first-round bid for the properties, joined by Apollo Global Management, KKR & Co, The Blackstone Group, Sinclair Broadcast Group, and TEGNA. The Los Angeles Times wrote last month that Apollo had preliminary conversations with LeBron James’ media company, Uninterrupted, about joining its bid.
Some valuations peg the total worth of the 22 RSNs around $20 billion. Disney could sell the 22 RSNs either collectively or individually, and there are additional bidders for specific networks. The Yankees are said to be seeking to buy back the YES Network that broadcasts its games, for example. The New York franchise currently owns 20 percent of YES and is part of a group bidding to acquire the remaining 80 percent—a group that includes Amazon, according to CNBC.
There has been speculation that Fox might try to re-acquire the RSNs although it didn’t submit a first-round bid to Disney. Rupert Murdoch’s company is seeking to increase its coverage of news and sports, as evidenced by Fox’s recent renewal of MLB broadcast rights.
SportTechie Takeaway
Amazon has acquired a number of high-profile sports rights for Prime Video—NFL Thursday Night Football and a set of English Premier League games, for example—but, to date, those deals have been negotiated at the league level for a portion of each league’s schedule. This bid for the RSNs signals a new approach: coverage of specific teams for the entirety of their schedules. If Amazon ultimately prevails in this auction, this would be a landmark shift in how the tech company carries sports and in how regional sports are broadcast.