Bloomberg News

News Corp. Said Close to Buying Stake in Yankees’ Network

November 15, 2012

News Corp. Said Close to Buying Stake in Yankees’ Sports Network

Adding YES would provide News Corp. games from a marquee Major League Baseball team, the Yankees. Photographer: Andrew Harrer/Bloomberg

News Corp. (NWSA:US) is in advanced discussions to acquire a stake in YES Network, the cable channel that carries New York Yankees baseball games, according to people with direct knowledge of the talks.

Negotiations are ongoing and the sides are working toward an agreement, said the people, who sought anonymity because they weren’t authorized to speak publicly. News Corp. would buy its interest from parties including Providence Equity Partners Inc. and Goldman Sachs Group Inc. (GS:US) The Yankees also hold a stake in the channel founded by their late owner, George Steinbrenner.

Adding YES would give Rupert Murdoch’s News Corp. a stake in the channel with games from the Yankees, a marquee Major League Baseball team, and the National Basketball Association's Brooklyn Nets, strengthening its regional sports business. The company plans a national sports channel next year to compete with Walt Disney Co. (DIS:US)’s ESPN and NBC Universal’s NBC Sports.

News Corp. is also trying to retain rights to carry Los Angeles Dodgers baseball games.

YES Network generates more than $200 million in annual earnings before interest, taxes, depreciation and amortization, making it worth more than $3 billion, Forbes reported in April. Goldman, which helped fund the network in 2001, held a 34 percent stake, the magazine said.

Julie Henderson, a spokeswoman for News Corp., declined to comment, as did Andrew Cole, a Providence Equity spokesman, and Eric Handler, a YES spokesman. Michael DuVally, a spokesman for Goldman Sachs, declined to comment.

News Corp., based in New York, fell 2.5 percent to $23.54 yesterday in New York trading. The shares have advanced 32 percent this year.

The New York Times reported yesterday that the sides were close to an agreement.

To contact the reporters on this story: Andy Fixmer in Los Angeles at afixmer@bloomberg.net; Scott Soshnick in New York at ssoshnick@bloomberg.net

To contact the editors responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net; Michael Sillup at msillup@bloomberg.net


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Companies Mentioned

  • NWSA
    (News Corp)
    • $18.14 USD
    • -0.15
    • -0.83%
  • GS
    (Goldman Sachs Group Inc/The)
    • $175.4 USD
    • -0.86
    • -0.49%
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