Amazon Prime Video Bolsters Sports Broadcast Portfolio with Investment in Bankrupt Diamond Sports Group’s RSNs
Amazon Prime Video is poised to enhance its presence in the American sports broadcasting landscape following a strategic agreement to salvage Diamond Sports Group‘s financially troubled regional sports networks (RSNs).
In a recent restructuring announcement, Amazon revealed its plan to invest $115 million for a minority share in Diamond, alongside a partnership to stream Diamond’s content on Prime Video. This move will position Prime Video as a leading platform for Diamond’s offerings, allowing customers to purchase and stream local Diamond channels directly.
This service will feature live broadcasts and supplementary content for MLB, NBA, and NHL games, focusing on teams under Diamond’s streaming rights. Details regarding the cost and availability of these services will be announced at a future date.
Diamond has reached a restructuring agreement with its key creditors, involving over 85% of its first-lien debt holders, over half of its second-lien debt holders, and two-thirds of its unsecured bondholders. This arrangement proposes a reorganization plan that allows Diamond to recover from bankruptcy and continue its operations.
Diamond, known for operating Bally Sports regional sports channels in the U.S., has also agreed in principle with its parent company, Sinclair Broadcast, to resolve ongoing legal disputes. Under this agreement, Sinclair will pay Diamond $495 million.
Diamond’s financial struggles began ten months ago, leading to a bankruptcy filing with debts surpassing $8 billion. Sinclair acquired these RSNs, initially known as Fox SportsNet, from Disney in 2019, a mandatory step for Disney’s acquisition of assets from 21st Century Fox.
The RSN’s performance has declined due to the increasing trend of cord-cutting, which diminished their cable subscriber base. Diamond had previously sued Sinclair for $1.95 billion, accusing it of mismanaging funds. The current agreement with Sinclair concludes this litigation.
The future of Diamond Sports Group remains to be determined, with speculations in the U.S. media hinting that its valuable MLB rights might not stay with the network after this year. There is anticipation that MLB might prefer negotiating directly with Amazon for these rights.
Amazon Prime Video has broadened its sports content in India by introducing a new sports channel in partnership with FanCode. This channel is now accessible through Prime Video Channels in the region, catering specifically to the Indian market.
Ragul Thangavel
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