Disney Has Sold its Stake in YES Network

Disney announced on Thursday that it has sold its stake in YES Network to an investor group in a $3.47 billion deal.

The group includes e-commerce giant Amazon, the New York Yankees, and Sinclair Broadcast Group.

The investor group has acquired the 80% stake of the YES Network that was not already held by the Yankees, according to the press release.

According to Disney’s press release, “The transaction received the approval of the U.S. Department of Justice. Last year, Disney and Twenty-First Century Fox, Inc. entered into a consent decree with the Department of Justice that allowed Disney’s acquisition of 21st Century Fox to proceed while requiring the subsequent sale of 21st Century Fox’s interests in 22 regional sports networks, including the YES Network.

On August 23, Sinclair completed its acquisition of 21 of the RSNs from Disney, excluding the YES Network.

A press release by the investor group has said that the Yankees, Sinclair and Amazon will make up a “new strategic partnership.” It also states that the Yankees “will contribute its excellence in developing, producing and marketing sports content that is compelling for fans globally,” and Sinclair “will work with the YES team management to manage traditional and virtual distribution relationships.” It did not mention Amazon’s role.

The Yankees will be the majority shareholder with a 26% stake and Sinclair will own 20%. Amazon has a 15% stake but also has the option to increase that in the future.

Yankees president Randy Levine stated, “We’ll be developing a whole bunch of programs that are in the works as we speak. Amazon has got great expertise in the technological world and the digital world.”
He added, “The specifics will come in the future as we start to roll out new programs.” The digital rights for the YES Network are currently run through Fox Sports.”
YES Network President Jon Litner will remain in his current role.

Disclaimer: We have no position in Walt Disney Co. (NYSE: DIS) or any of the other companies mentioned and have not been compensated for this article.