Amazon.com is in talks with Diamond Sports Group and some creditors about investing in and streaming partnerships with bankrupt regional sports broadcasters, according to people familiar with the matter.
Under a potential deal, Amazon would have multi-year streaming rights to MLB, NBA and NHL games broadcast on cable channels operated by Diamond Sports, the people said in a private matter. He requested anonymity. Diamond will continue to operate the channel, they said, but added it was unclear how much Amazon would invest in the company.
The Wall Street Journal earlier reported on the meeting. Representatives for Diamond and Amazon declined to comment. Negotiations are not final and are subject to change. Any transaction requires bankruptcy court approval.
The stock price of Sinclair, which owns Diamond, soared after the Journal’s report, reaching $14 on the New York market. The Hunt Valley, Maryland-based company owns, operates or services 185 television stations in 86 markets.
Diamond filed for Chapter 11 protection in March. Sports broadcaster officials said at a hearing Friday that they were still considering the possibility of a restructuring deal, contradicting statements made by Sinclair officials in court last month that Diamond was likely to liquidate.
Live sports are a big part of Amazon’s content-to-commerce push, in an effort to generate more revenue from commercials and expand its advertising business beyond display ads and keyword search results on its popular web store. be.
During a livestream of an NFL game, the e-commerce giant aired a commercial featuring a QR code that viewers could scan to go directly to products and brand websites on Amazon.com. Sports broadcasts have more commercial opportunities than movies or shows, and ads can irritate viewers.
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