Amazon (AMZN) is reportedly in talks to invest in bankrupt Diamond Sports Group (DSG) as the tech giant looks to become a bigger player in the world of sports streaming.
According to the Wall Street Journal, the companies are in “active” negotiations regarding strategic investments and a multi-year streaming partnership. If the deal goes through, Amazon’s Prime Video service will become the official streaming home for Diamond’s games.
Diamond, a regional sports network (RSN) operator and subsidiary of Sinclair Broadcast Group, filed for Chapter 11 bankruptcy protection in March. The company is currently undergoing legal proceedings pending a decision regarding Chapter 11 and liquidation.
In 2019, Diamond acquired broadcast rights to 42 teams in the MLB, NBA and NHL in a $9.6 billion deal with Fox. But the struggling RSN took on more than $8 billion in debt to do so. A decline in cable demand led to the March filing.
Amazon stock rose 3% and Sinclair (SBGI) stock rose more than 2%. Neither company immediately responded to Yahoo Finance’s requests for comment.
Amazon, like other tech giants, has become more aggressive in streaming deals in recent years, especially when it comes to sports.
Just recently, Amazon debuted its first Black Friday NFL game. According to AdAge, the company reportedly charged $880,000 for the 30-second ad spot, more than double the traditional price for Thursday Night Football games.
Amazon agreed to spend $1 billion a year on an 11-year NFL Thursday Night Football deal, while Google’s YouTube (GOOG, GOOGL) agreed to spend $2.5 billion a year to acquire the sought-after rights to NFL Sunday Ticket. It is reported that he spent a lot of money on it.
The deal comes as traditional media faces significant streaming losses and a significant decline in linear advertising revenue. As code reduction accelerated, terrestrial television viewership fell below 50% for the first time in July.
alexandra canal I’m a senior reporter at Yahoo Finance. Follow her on Twitter @allie_canal, LinkedIn, Email alexandra.canal@yahoofinance.com.
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