(Bloomberg) – Video streaming service Deltatre is about to sign a contract with Sinclair Broadcast Group Inc. to be the digital video provider for the 21 regional sports networks the broadcaster bought from Walt Disney Co. last year Conversations.
Deltatre would provide the underlying technology for live sports broadcasts across the various networks, respondents who asked not to be identified because the negotiations are private. Financial details have not been released.
Sinclair and Bruin Sports Capital, which owns Deltatre, did not immediately respond to requests for comments.
If the deal is closed, it could add value to Deltatre at a time when its owners are considering selling. Bloomberg News reported in December that Bruin was reviewing strategic options for the company, including the possibility of a sale with a value of at least $ 1 billion.
Deltatre’s current customers include the National Football League, Major League Baseball, UEFA European Football Association and Discovery Inc. The company is based in Turin, Italy.
Last year, Sinclair agreed to pay $ 9.6 billion for the 21 regional sports networks (RSNs) that were once part of the Fox sports empire. Disney had agreed to sell the networks as part of the completed acquisition of 21st Century Fox Inc.’s entertainment facilities.
The networks that cover cities like New Orleans, Detroit and Indianapolis have local rights to more than 40 pro teams in the NHL, NBA and MLB, as well as rights to smaller leagues and clubs. They had around 74 million subscribers and generated sales of $ 3.8 billion in 2018.
The talks take place as the MLB teams prepare to regain local streaming rights to their games, which have long been controlled by the entire league. This change could eventually give team RSNs – or other partners – the right to create digital offerings for which local fans do not need a cable subscription.
Sinclair recently acquired a 20% stake in the YES Network, the New York Yankees’ RSN, and will shortly launch the Marquee Sports Network, an RSN it shares with the Chicago Cubs. These two networks are currently not involved in the Deltatre deal.
– With the support of Gerry Smith.
To contact the editors responsible for this story: Nick Turner at [email protected], John J. Edwards III
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