- Yankee Global Enterprises, Sinclair Broadcast Group, and Amazon are buying the remaining 80% stake of the YES Network for $3.47 billion
Yankee Global Enterprises along with strategic partners Sinclair Broadcast Group and Amazon announced the acquisition of the YES Network from The Walt Disney Company. This deal is happening by acquiring the 80% of the YES Network not already held by Yankee Global Enterprises at a total enterprise value of $3.47 billion. Plus additional equity investments were provided by RedBird Capital, funds managed by Blackstone’s Tactical Opportunities business, and Mubadala Capital.
The YES Network is known as the country’s most-watched regional sports network (RSN) as it broadcasts games, programs, and specialty content for the New York Yankees, the Brooklyn Nets, Major League Soccer’s New York City FC, and the WNBA’s New York Liberty.
Ever since the YES Network launched in 2002, it has earned 118 Emmy Awards and has consistently been ranked as one of the most valuable sports business brands in the world. And in addition to televising 128 regular-season Yankees games per season, the YES Network also airs pre-and postgame shows, Yankeeography (the Emmy award-winning biography series on past and present Yankees greats) and Yankees Magazine (a weekly magazine show consisting of Yankees highlights, player profiles, interviews, and behind-the-scenes features).
Yankee Global Enterprises, Sinclair Broadcast Group, and Amazon will work together to enhance the network and position it strategically to continue its leadership in sports broadcasting across all forms of distribution. And Jon Litner will remain in his existing role as President of the YES Network.
Going forward, Yankee Global Enterprises will contribute its excellence in developing, producing, and marketing sports content that is compelling for fans globally. Sinclair — which is the owner of 22 RSN brands and the Tennis Channel as well as the owner, operator, and service provider to 191 television stations in 89 markets — will work with the YES team to manage traditional and virtual distribution relationships.
“This transaction brings the YES Network and all of its popular programming even closer to the organization that inspired its very development,” said Yankee Global Enterprises CEO Hal Steinbrenner. “Along with our partners, we look forward to greatly expanding the way that sports content is delivered and consumed by fans everywhere.”
For the last eight straight years, YES made the list of Forbes’ top 10 most valuable sports business brands in the world.
“Throughout its nearly two-decades on-air, the YES Network has set the gold standard for regional sports coverage,” added New York Yankees president Randy Levine. “We look forward to working with our strategic partners and our investors – RedBird Capital, Blackstone, and Mubadala Capital – to expand the network in innovative and exciting ways.”
Sinclair airs its content through multiple platforms, including over-the-air, multichannel video program distributors, and digital platforms.
“There are very few sports brands in the world as great as the New York Yankees that offer impressive reach and recognition,” explained Sinclair Broadcast Group president and CEO Chris Ripley. “We look forward to working with our partners to develop and deliver top-notch play action and sports programming for the fans.”
Based out of New York and Dallas, RedBird Capital Partners is a principal investment firm founded by former Goldman Sachs Partner Gerald Cardinale in 2014. And RedBird has invested $2.5 billion of equity to support its entrepreneur-led platforms and connected patient capital with business founders.
“The Yankees have assembled a tremendous ownership group to steward YES as the premier regional sports network in the country,” commented Cardinale. “It has been a privilege to work with the Yankees and the Steinbrenner family for almost two decades since we created the YES Network back in 2001. We are excited to continue this partnership and to be part of this team.”
Tactical Opportunities (known as Tac Opps) is Blackstone’s opportunistic investment platform, which invests globally across asset classes, industries, and geographies, seeking to identify and execute on attractive, differentiated investment opportunities.
“The YES Network is a first-class brand in the sports media industry – much like the iconic team that inspired its creation. It has unrivaled and in-demand content that fans love, and we’re excited about the opportunity to partner with this exceptional investor group to help fuel its continued success moving forward,” pointed out Blackstone Tactical Opportunities senior managing director Todd Hirsch.
Mubadala Capital launched in 2011 as the financial investment arm of Mubadala, operating six integrated businesses focused on various asset classes and geographies including private equity, public equities, credit, venture, sovereign investment partnerships, and Brazil. The group invests globally across the capital structure in both public and private securities whether directly or through third-party managed funds. Along with managing its own balance sheet investments, Mubadala Capital manages third party capital on behalf of institutional investors in three of its businesses including through three private equity funds and two early-stage venture funds.
“The opportunity to invest in the YES Network as part of this consortium is a natural extension of our relationship with the Yankees organization,” noted Mubadala Capital head Hani Barhoush. “It is also squarely in-line with our private equity strategy and our history and track record of identifying high-quality content assets managed by top quality management teams and supported by strong ownership groups.”
