Yankee Global Enterprises, with strategic partners Sinclair Broadcast Group and Amazon, have announced the purchase of the YES Network from The Walt Disney Company, acquiring the 80 percent of the YES Network not already held by Yankee Global Enterprises at a total enterprise value of $3.47 billion.
By Howard M. Riell
Additional equity investments were provided by RedBird Capital, funds managed by Blackstone’s Tactical Opportunities business, and Mubadala Capital, according to a Business Wire press release.
The YES Network is the country’s most-watched regional sports network (RSN), broadcasting games, programs and specialty content for the New York Yankees, the Brooklyn Nets, Major League Soccer’s New York City FC, and the WNBA’s New York Liberty.
The new strategic partnership leverages the expertise and market reach of three highly successful companies – Yankee Global Enterprises, one of the world’s leading sports brands; Sinclair Broadcast Group, a diversified media company and leading provider of local sports and news; and Amazon, the innovative, multinational technology company, according to the release. The three companies will work together to enhance the network and position it strategically to continue its leadership in sports broadcasting across all forms of distribution. Jon Litner will remain in his existing role as President of the YES Network.
The partnership received equity investments from three leading financial investors: RedBird Capital, funds managed by Blackstone’s Tactical Opportunities business, and Mubadala Capital.
“Yankee Global Enterprises will contribute its excellence in developing, producing and marketing sports content that is compelling for fans globally. Sinclair, which is the owner of 22 RSN brands and the Tennis Channel, as well as the owner, operator, and service provider to 191 television stations in 89 markets, will work with the YES team management to manage traditional and virtual distribution relationships,” the statement added.
“This transaction brings the YES Network and all of its popular programming even closer to the organization that inspired its very development,” said Hal Steinbrenner, CEO, Yankee Global Enterprises. “Along with our partners, we look forward to greatly expanding the way that sports content is delivered and consumed by fans everywhere.”
“Throughout its nearly two-decades on-air, the YES Network has set the gold standard for regional sports coverage,” said Randy Levine, President, New York Yankees. “We look forward to working with our strategic partners and our investors – RedBird Capital, Blackstone and Mubadala Capital – to expand the network in innovative and exciting ways.”
“There are very few sports brands in the world as great as the New York Yankees that offer impressive reach and recognition,” said Chris Ripley, President and CEO, Sinclair Broadcast Group. “We look forward to working with our partners to develop and deliver top-notch play action and sports programming for the fans.”
