Rupert Murdoch’s media conglomerate News Corp. said Tuesday it reached a deal to buy a 49 percent stake in the Yankees Entertainment and Sports Network, which broadcasts baseball and other sports.
News Corp. did not provide a value for the investment, which features an option to boost the stake to 80 percent after three years. But some reports said the deal values the YES Network at more than $3 billion.
The YES Network provides live local television coverage of New York Yankees baseball and Brooklyn Nets basketball, as well as other sports-related programming.
The YES Network separately announced a media rights agreement that will keep Yankees broadcasts on the YES Network through 2042, subject to the approval of Major League Baseball.
The current YES owners, Yankee Global Enterprises, Goldman Sachs and other investors will reduce their ownership in connection with the deal, a statement from the companies said.
“This is a tremendous opportunity to enhance News Corporation’s industry-leading portfolio of sports properties, while also strategically re-entering the New York market,” said James Murdoch, deputy chief operating officer at News Corp.
“The YES Network represents the gold standard for regional sports networks and is a pioneer in sports media.”
News Corp, one of the biggest media-entertainment companies, owns the 20th Century Fox studios and Fox broadcasting operations, along with cable television assets, newspapers in the US, Britain and Australia, and the HarperCollins publishing house.
Murdoch has said the company intends to split into two separate firms, one for publishing and the other for the faster-growing media and entertainment operations. He intends to remain in charge of both firms.
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