Comcast, Cablevision in deal on 2 sports networks
- From: Garondo Marondo <Classic.Mr.Hole@xxxxxxxxx>
- Date: 30 Apr 2007 12:26:10 -0700
http://news.yahoo.com/s/nm/20070430/media_nm/comcast_rainbow_dc;_ylt=AuPg8a3lwrQpWFIHEheCj8RxFb8C
NEW YORK (Reuters) - Comcast Corp. will buy Cablevision Systems
Corp.'s interests in two regional sports networks for $570 million,
the cable companies said on Monday.
The deal will give Comcast 100 percent ownership of FSN New England
and 60 percent ownership of FSN Bay Area, with the remaining 40
percent owned by an affiliate of News Corp..
Cablevision will no longer have any regional sports programming
operations outside the New York market. In addition to its
telecommunications and programming businesses, it owns Madison Square
Garden and its pro sports teams.
Analyst Craig Moffett at Sanford Bernstein said in a note that the
sale by Cablevision could mark an "incremental step toward yet another
privatization bid."
In January, Cablevision board rejected a privatization bid by the
Dolan family, which owns a controlling stake in the Bethpage, New York-
based company.
FSN Bay Area has rights to live television coverage of four pro sports
teams: Oakland Athletics (baseball), San Francisco Giants (baseball),
Golden State Warriors (basketball) and San Jose Sharks (ice hockey).
FSN New England covers the Boston Celtics pro basketball team.
Cablevision's interests in the FSN operations are held by the
company's Rainbow Media unit.
Comcast, the No. 1 U.S. cable operator, is looking to build new sports
networks in markets where it already has cable systems in order to
leverage resources in those markets.
It already has eight regional sports networks under the SportsNet
brand.
Comcast has more than 24.2 million subscribers across the country.
Moffett said the FSN deal makes sense for Comcast because it gives it
additional cross-promotional options in those regions and could
bolster Comcast in the future when competing with satellite television
and telephone operators.
"While investors have made clear their distaste for the idea of
Comcast making content acquisitions, the Regional Sports Network
business is viewed, appropriately, through a different lens," the
analyst said.
.
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