Disney gave away its share to an investor group in the YES Network. This group comprises Amazon, the Yankees, and Sinclair Broadcasting. The group declared this week that it was purchasing the 80% share in the YES Network in a $3.47 Billion agreement earlier held by Disney. In an interview, the group claimed that the sale might mark the starting of a new “tactical partnership” between the 3 firms.
“The new tactical partnership uses the market reach and expertise of 3 extremely successful firms—one of the leading sports brands in the world, Yankee Global Enterprises; leading supplier of local news & sports and a diversified media firm, Sinclair Broadcast Group; and the multinational, innovative technology firm, Amazon,” claimed the media report. The three firms will collaborate to improve the status of the YES Network.
21 regional sports networks were brought by Sinclair previously this month from Disney, which it initially purchased when it purchased the bulk of entertainment assets from 21st Century Fox earlier in March.
On a related note, Disney earlier disregarded its plans to develop a 700-room luxury hotel close to its Anaheim resort. It mentioned the city’s removal of a tax rebate deal that might have saved the media behemoth $267 Million over 2 Decades.
The termination of the hotel (what might have been the 4th addition at the resort) indicates the rising hit between the city of Anaheim and the Burbank firm. The city was once believed to be a dependable business associate for Disney.
“While this is unsatisfactory for many, the agreements and conditions that stimulated this deal in Anaheim no longer survive and we must regulate our long-term investment plan,” claimed Lisa Haines, Disney spokeswoman, to the media in an interview. The conditions modified when the city told Disney officials that it was killing a deal made to reimburse 70% of the hotel’s transient occupancy toll back to Disney over 2 Decades.