Update: News Corp. closing in on deal for YES stakeBy
Nov. 19th: News Corp. would acquire 49% of YES in the transaction according to Richard Sandomir and Amy Chozick, but there would be the option to increase their stake to as much as 80% in 3-5 years. I can’t help but wonder if that option is an indication that the Steinbrenners have their eye on selling the club down the line. The network, meanwhile, is worth a bit more than $3 billion, meaning it is likely more valuable than the team itself. In-freakin’-sanity.
Nov. 15th: Via Matthew Futterman: News Corp. is closing in on a deal to purchase a minority stake in the YES Network. They have their eye on the nearly 40% share currently owned by long-time investors Goldman Sachs and Providence Equity Partners. The Yankees own about one-third of the network and aren’t selling any portion of their share.
Last month we learned that the team was looking for investors to buy out Goldman and Providence. News Corp. is a monster, the world’s second largest media group in terms of revenue. They have stakes in FOX, The New York Post, and The Wall Street Journal among many other media outlets. Futterman says YES is likely to raise the monthly fees (which currently lag behind other regional networks) it receives from cable providers when their contracts expire in the coming years. In other words, the deal will make the Yankees a ton of money and your cable bill might be slightly higher in the future. Business as usual, really.