Updated Dec 18, 2023 - Business

Amazon weighs investment in Diamond Sports Group

Photo: Todd Kirkland/Getty Images

Amazon is in talks with Diamond Sports Group regarding a strategic investment into the beleaguered regional sports giant, Axios has confirmed.

Why it matters: An investment from the tech giant would offer a major lifeline to the RSN owner as it attempts to exit Chapter 11 bankruptcy.

Details: The talks involve Amazon making an investment into Diamond as well as signing a multiyear streaming partnership, according to a source with direct knowledge of the matter.

  • Amazon Prime Video would become the streaming home for all Diamond's games, the source said. The RSN group currently holds rights to more than 40 professional teams across the NBA, MLB and NHL.
  • Financial terms could not be determined, and a bankruptcy judge would have to approve any deal between Amazon and Diamond.
  • Representatives for Diamond Sports Group and Amazon declined to comment. The Wall Street Journal was first to report the talks.

Of note: Shares of Sinclair, the owner of Diamond Sports Group, surged more than 7% Monday afternoon following the news of Amazon's potential investment.

The big picture: Diamond had recently reworked its rights deals with its NBA teams that would allow those teams to remain on its Bally Sports networks for the rest of the current season. They would then revert back to the NBA.

  • Diamond is currently working on similar arrangements for its NHL teams and some of its MLB teams.

Editor's note: This story was updated to add Sinclair's stock price move on the news.

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