Tennis - Tennis Channel has been sold to Sinclair Broadcast Group, after the latter entered into an agreement to buy the company for $350 million. Tennis Channel is the only 24-hour, television-based multimedia destination dedicated to tennis.
The deal is expected to close in the first quarter of this year and and needs to clear regulatory approval, as per Televisionpost.com. Sinclair President, CEO David Smith, commented, "Tennis Channel is an established property with high-quality content and advertisers, and is vastly under-compensated and under-distributed relative to the value it brings to its viewers.
It was the only independently-owned major sports network left, and we knew we could unlock value through a tuck-in acquisition. The additional subscriber base, which has already been contracted, equates to the creation of approximately $200 million of incremental value at closing." Tennis Channel chairman, CEO Ken Solomon, commented, "In Sinclair we have found the perfect owner-partner to accelerate scaling the Tennis Channel brand and our sport’s expanding fan-base to the next level.
Sinclair’s unique size and position in the media ecosystem will facilitate significant distribution growth towards parity with our competitive set and expand our brand’s assets and unique value as the go-to destination for all things tennis in the US and beyond.
The larger platform will immediately help develop incremental advertising and sponsorship business and puts us in a great position to enhance our already comprehensive rights portfolio domestically as well as develop the brand internationally". Also Read: ATP World Tour extends agreement with Tennis Channel .