Amazon to back Sinclair in FOX RSN bid – report
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Michelle Clancy
| 27 April 2019

Amazon.com may reportedly join Sinclair Broadcast Group to lead a joint bid to acquire 21 Fox regional sports networks from Walt Disney Co.

Amazon is already in discussions around a related multibillion-dollar sale of the New York regional sports network YES Network, home of the New York Yankees.

Disney is required to divest the networks as a condition of its $72bn acquisition of Fox’ media assets.

The New York Post reported that Sinclair, with Amazon's backing, will tender a $9bn all-cash bid for the non-YES RSNs. While the broadcast conglomerate is said to have bridge financing, lenders are reportedly asking for an additional $1bn in equity – which is where Amazon comes in as a backer.

Major League Baseball may also join Sinclair; originally it was said to be teaming up with the Canada Pension Plan Investment Boardto be teaming up with the Canada Pension Plan Investment Board to buy the 21 RSNs, which would give the league broadcast rights to 15 of the 30 MLB teams; but it has now dropped that plan. A status as an equity partner would allow it to get back into the game, so to speak.

The 21 RSNs are valued by Guggenheim at an average of $860 million each, while YES Network is considered to be worth more than $4 billion. It is expected to go to the New York Yankees.

Disney is said to be asking $20 billion for the set of networks, but bids are reportedly not measuring up so far.

Apollo Global Management is also said to be making a bid. Fox meanwhile has said that despite rumours, it has no intention to try to gain the RSNs back at fire sale prices.to try to gain the RSNs back at fire sale prices.