Twenty-First Century Fox, Inc.
) entered into a deal to increase its stake to 80% in Yankees
Entertainment and Sports Network (YES). The company already holds
49% stake in YES that it acquired in Nov 2012. The market seemed
more or less unperturbed as reflected in the stock price, which
dipped marginally to close at $31.05.
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YES is a regional sports network that broadcasts live coverage of
New York Yankees baseball, Brooklyn Nets basketball and other
sports events across New York, Connecticut, New Jersey and parts
The deal is likely to be sealed by the end of March this year,
subject to regulatory and requisite approval. However, the terms
of the deal have not yet been disclosed.
Following the acquisition, YES will become a consolidated
entity of Twenty-First Century Fox but the remaining 20% stake
will be owned by Yankee Global Enterprises. Moreover, post the
acquisition, the current President and Chief Executive Officer of
the YES, Tracy Dolgin will continue with his services.
Twenty-First Century Fox is focusing on enhancing its portfolio
of regional sports channels to strengthen Fox Sports Media
Group's position in the lucrative sports entertainment business,
where it competes with
The Walt Disney Co
) ESPN as well as
) CBS Sports Network among others. The majority stake buyout in
YES will bolster its position the regional market.
Already, the company boasts a well-recognized regional sports
network, FSN (Fox Sports Net, Inc). The launch of Fox Sports 1
that took place in Aug 2013 will likely enable the company to
emerge as a strong competitor in the world sports market.
Earlier, the company had acquired 51% stake in Eredivisie Media
& Marketing. It also purchased 50% stake in ESPN STAR Sports
and changed the latter's name to Fox Star Sports Asia in Nov
2012. Further, in Dec 2012, it acquired regional sports network,
Sports Time Ohio.
Currently, Twenty-First Century Fox carries a Zacks Rank #3
(Hold). A better-ranked media stock is
DreamWorks Animation SKG Inc.
) with a Zacks Rank # 1 (Strong Buy).