The 22 RSNs that Disney will sell after it completes its deal with Fox are "attracting preliminary interest from media and technology companies" including Sinclair Broadcast Group, YouTube and Amazon, "as well as buyout firms" such as Blackstone, CVC Capital Partners and Apollo Global Management, according to sources cited by Ahmed & Smith of BLOOMBERG NEWS. Sources said that the sale process "could kick off within weeks," even though Disney "has at least three months after it completes its Fox asset acquisition to offload them." An auction "could value" the properties at about $20B "thanks to high profitability and strong cash generation." While media companies are "likely to bid for the networks as a package or in pieces, private equity firms could be tempted to take it one step further." Sources said that with the FCC "preparing to loosen restrictions" on how many TV stations one company can own, some buyout firms are "scoping out deals that could bring a station owner and the sports networks together." If the FCC scraps the rule, which prevents any one broadcaster from owning stations that reach more than 39% of U.S. homes, Sinclair, Nexstar Media Group and Tegna "would be better placed to compete as more of their viewers migrate to online platforms." Sources said that a private equity firm "could partner with a broadcaster to acquire some of the regional sports networks, or it could buy a broadcaster and then combine it with a rival or the networks, or both." Some teams, including the Yankees, are "weighing whether to buy back their own channels" (BLOOMBERG NEWS, 8/11).
