Sinclair Broadcast Group in the US has completed its acquisition of 21 Fox regional sports networks from the Walt Disney Co.
The deal was worth $9.6 billion, which values the businesses at $10.6 billion, and the US Justice Department approved the transaction on 23 August.
"Based upon its investigation, the Department did not find that the Divestiture Transaction would lead to competitive harm, and found that Sinclair has the incentive to use the RSNs to compete in all affected markets and that Sinclair has sufficient business experience and financial capabilities to compete effectively in the affected markets over the long term," according to the DoJ.
Disney had been required to divest the networks as a condition of its $72 billion acquisition of the media assets of Fox in 2018. Sinclair’s purchase does not include 21st Century Fox’s equity interest in the YES Network, home of the New York Yankees, considered to be worth more than $4 billion alone.
“We are very excited about the transformational aspects the RSN acquisition will have on Sinclair and are eager to bring those opportunities to life,” said Chris Ripley, CEO of Sinclair. “We welcome Jeff Krolik, president of the RSNs, and the rest of the RSN management team and staff to the Sinclair family. We have an exciting future ahead of us."
"Based upon its investigation, the Department did not find that the Divestiture Transaction would lead to competitive harm, and found that Sinclair has the incentive to use the RSNs to compete in all affected markets and that Sinclair has sufficient business experience and financial capabilities to compete effectively in the affected markets over the long term," according to the DoJ.
Disney had been required to divest the networks as a condition of its $72 billion acquisition of the media assets of Fox in 2018. Sinclair’s purchase does not include 21st Century Fox’s equity interest in the YES Network, home of the New York Yankees, considered to be worth more than $4 billion alone.
“We are very excited about the transformational aspects the RSN acquisition will have on Sinclair and are eager to bring those opportunities to life,” said Chris Ripley, CEO of Sinclair. “We welcome Jeff Krolik, president of the RSNs, and the rest of the RSN management team and staff to the Sinclair family. We have an exciting future ahead of us."
