MSG Networks is "sounding out suitors," but the sales process is "believed to be rather young and there is no guarantee a deal will be made," according to sources cited by Kosman & Atkinson of the N.Y. POST. Research firm SNL Kagan said that the RSN, which has the TV rights for the Knicks, Rangers, Devils, Islanders and other sports teams, "collects roughly $5 per subscriber per month -- among the highest in the country." MSG Networks reaches "roughly 7 million homes" in N.Y. and adjoining states. Its "enterprise value" is $3B, including a market cap of $1.7B and debt. Sources said that Verizon is "one possible buyer for MSGN," noting the company "needs content." A source said that AT&T is "seeking to buy RSNs to add to the five it already owns," but might be "reluctant to make a purchase now, as it is trying to win regulatory approval to buy Time Warner." Sources said that a MSGN sale "will not be easy," as RSNs are considered "mature and perhaps even a melting ice cube as viewers opt for skinny bundles and cord-cutting" (N.Y. POST, 4/4). At presstime, shares of MSG Networks were trading at $24.48, up 6.64% from the close of business yesterday (THE DAILY).
