Fox Indifference on Regional Sports Networks Suggests Low Prospects for Carriage, Says BTIG
That Fox isn't bidding on the regional sports networks Disney is selling as part of its buy of Fox's nonbroadcast assets (see 1901110004) is damning evidence of poor prospects of RSNs overall, BTIG Research analyst Rich Greenfield wrote investors Monday.…
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He said Sinclair appears to be the only bidder for all the RSNs -- minus the YES Network, which the New York Yankees likely are pursuing -- with others pursuing specific networks. He said it seems unlikely any company that could ensure wide distribution of the Fox RSNs is in the bidding, and an independent RSN could have trouble maintaining that distribution through the next round of carriage negotiations. Sinclair would likely try to combine its existing retransmission negotiation leverage with the network of RSNs, but that there's not much market overlap between Sinclair stations and the Fox RSNs would weaken its negotiating leverage, he said. In a separate note, BTIG analyst Brandon Ross said YES isn't a likely buyer for MSG Networks, which may be for sale, since the Yankees are interested in YES only to protect their own brand and haven't shown interest in a broader RSN portfolio.