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Diamond Sports Group has formalized its plan to exit Chapter 11 bankruptcy later this year in a deal that includes a $115 million investment from Amazon.

Why it matters: This puts the beleaguered RSN giant on a path to continue operating after this year and saves many pro teams from having to find new TV partners, Tim writes.

Details: Today's announcement is part of Diamond's restructuring support agreement (RSA) with its creditors.

The deal with Amazon will see the tech giant take a minority stake as well as become the streaming home for Bally Sports Networks' games. Bally carries more than 40 teams on its TV networks and has streaming rights for all the NBA and NHL teams that it carries, as well as five of its 11 MLB teams.

Amazon has an option to invest an additional $50 million.

The RSA includes an additional $450 million in financing from certain debt holders to support its operations and repay $350 million of its existing debt.

Additionally, Diamond settled its $1.5b fraud lawsuit with parent company Sinclair for $495 million.

The agreements still have to be approved by a bankruptcy judge. A hearing will take place later today.

Of note: The RSA overrides Diamond's previous cooperation agreement with its creditors and cancels the amended rights deals the company had struck with the NBA and NHL.

Diamond will be able to pay all of its rights fees for its current seasons and maintain its TV deals that were set to continue after 2024.

Those amended rights deals would have seen all of Diamond's TV contracts expire after 2024. 

The big picture: The deal marks Amazon's biggest move into the local sports business and makes the tech giant arguably the most important player in whatever future the RSN business has.

Live sports are becoming more essential to Amazon's streaming ambitions as the company seeks more ad dollars.

The deal comes after the exit of the streamer's No. 2 sports executive, Marie Donoghue.

Amazon is expected to bid heavily for NBA rights, which expire in 2025, once the league's exclusive negotiating window expires with Disney and Warner Bros. Discovery later this spring.

Be smart: The RSN business is careening toward extinction amid the rise of cord-cutting and more sports moving to streaming. Diamond's fate would decide just how much life that industry has left.

Diamond had already walked away from numerous rights deals while it was in bankruptcy as it looked to shore up its balance sheet — it turned away the Arizona Diamondbacks and San Diego Padres. It could still drop more MLB teams before the season starts.

The high fees paid by Diamond and other RSNs contribute heavily to teams' bottom lines; the uncertain fate of those TV deals has led some teams to cut payroll.

1 big thing: Amazon saves Diamond

Build A Rocket Boy, a Scotland-based gaming studio, has closed a $110 million Series D round to support its upcoming launch.

Why it's the BFD: The studio, led by former "Grand Theft Auto" developer Leslie Benzies, is one of the most highly anticipated gaming company launches this year, Tim writes.

Details: RedBird Capital Partners led the funding round. Julia Wittlin, a partner at the firm, will join Build A Rocket Boy's board of directors.

The round also includes participation from Galaxy Interactive, NetEase Games, Endeavor, Alignment Growth, Woodline Partners LP and GTAM Partners.

Flashback: Benzies led the development of many "Grand Theft Auto" titles while he was president of Rockstar North from 2001 to 2016.

What's next: The studio is preparing to debut its first game called MindsEye, an open-world platform called Everywhere and a suite of user-generated content design tools called Arcadia.

2. The BFD: Build a funding round

Illustration of a gaming control with a dollar sign cable

Bain & Company has named Daniel Hong as head of its Americas Communications, Media & Entertainment (CME) practice.

Why it matters: The appointment comes with an aggressive revenue goal for the consulting firm's CME practice over the next three years, Kerry writes.

Details: Hong will continue reporting to Herbert Blum, Bain's global head of CME.

Speaking from Bain's Bryant Park office, Hong says his biggest challenge in the new role will be maintaining focus amid ambitious growth goals.

The CME practice doubled revenue from 2020 to 2023, and Hong says the company aims to double it again from 2024 to 2027.

Catch up quick: Hong joined Bain in 2002, working out of the New York office. He primarily has been based there, with stints in Japan, South Africa and India.

Hong says he's long been interested in media. He worked at MGM for a summer while getting his MBA. At Bain, he started working more with media clients around 2008 when the practice began formalizing.

Most recently, he served as sector lead of Bain's advertising sub-sector and worked with ad agencies, diversified media businesses and video game companies.

What to watch: Hong says "convergence is the next wave" in media after the direct-to-consumer boom. He says success could come from bundling media, like TV shows, video games and fitness, under one subscription.

That trend is "intertwined" with Big Tech, which impacts the sector as competitors, customers and partners, Hong says.

Hong says he anticipates large-scale M&A in media this year with expected dealmaking in the video game industry, B2B info services and location-based entertainment.

1 fun fact: Hong's wife, Tevia Segovia, is also a partner at Bain. She leads the payments practice within the Americas.

3: Exclusive: Bain's new head of Americas CME

Photo illustration of Daniel Hong with Bain & Company's logo and abstract shapes.

Daniel Hong. Photo illustration: Axios Visuals. Photo: Courtesy of Bain & Company

Go deeper in our full database in the Axios Pro Deals Tracker.

• TRAX, a London-based music startup, raised a $2.9m decentralized funding round on the $ICP blockchain. https://axios.link/3vzMMCt

• The Free Press, Bari Weiss' media company, plans to raise funds this year, Sara Fischer reports. https://axios.link/47JUZkR

• Thomson Reuters (NYSE: TRI) acquired World Business Media, a London-based provider of news on the insurance and reinsurance markets. https://axios.link/41YeHbv

• Macquarie and PSP Investments are seeking to sell AirTrunk, an Australian data center operator that could fetch around US$8b, per Bloomberg. https://axios.link/3UaUfSG

• Red Ventures, the Fort Mill, S.C.-based digital media and marketing company, approached strategic buyers about acquiring CNET, the tech news and reviews site it bought from ViacomCBS in 2020, with the hopes of fetching at least $250m, Sara scoops. https://axios.link/41ZMCAG

• Kaspi.kz, a Kazakhstani super app, disclosed plans to raise $873m in its Nasdaq float (KSPI). https://axios.link/48Yg2kM

4. Deal flow

• Anne Globe, previously CMO of Skydance Media and DreamWorks Animation, was named CMO at Imax as Denny Tu, who served as CMO since 2019, leaves. https://axios.link/3tSwUux

• Alex MacCallum is rejoining CNN as EVP of digital products and services. https://axios.link/4b21ZfM

• Toby Byrne was named EVP of national ad sales at A+E Networks. He spent the past six years as president of Zefr and 20 years at Fox. https://axios.link/4b1vyyk

• Paul Royall was named the permanent executive news editor for the BBC News Channel. https://axios.link/48VZvhh

• Zac Frognowski, previously a partner at Grandview, joined Brillstein Entertainment Partners. https://axios.link/3tUUqa7

• David Meese, a scripted TV agent at WME, was promoted to partner. https://axios.link/3tYOP2H

• Chris Russell was appointed to director of global basketball sales at the sports marketing agency Sportfive. https://axios.link/48QXPpg

• Bob Chapek, former Disney CEO, was appointed to the board of Masimo Corp. https://axios.link/3S05kUe

• Pharrell Williams was appointed to an adviser role at Human Made. https://axios.link/47FoBQD

• James Liddy of Deutsche Bank was hired as head of gaming, leisure and lodging investment banking for EMEA at Jefferies, per Bloomberg. https://axios.link/4aZwinu

5. Movin' on up (or out)

🗞️ The Baltimore Sun explores the question of whether there can be a worse newspaper owner than Alden Global Capital (Nieman Lab)

"Why Alden would sell to Smith now — and not to Bainum a couple years ago — is an open question. In 2021, [Stewart W. Bainum, Jr.] and Alden reportedly agreed on a $65 million sale price — until Alden insisted on Bainum adding a $12 million/year fee to Alden for running the Sun's backend for five years," Joshua Benton writes.

😲 Newsroom meddling, money woes: How a billionaire owner lost his star editor at the Los Angeles Times (TheWrap)

"Furthermore, Merida was frustrated to not have a clear budget with which to run the newsroom. After the severe newsroom cuts that came mid-year in 2023 and continued financial losses, he did not have confidence in any budget figure for the newsroom," Sharon Waxman and Alexei Barrionuevo report.

📉 Fox telecast of the 75th Emmy Awards hits a new ratings low (LA Times)

"Along with the delay, the drop may be a result of awards show fatigue, as the Golden Globe Awards aired Jan. 7 on CBS and the Critics Choice Awards were shown Sunday on the CW. That meant many trips to the Emmy stage by the same cast members celebrated on all three telecasts," Stephen Battaglio writes.

6. Channel surfing

an illustration of a hula dancer figurine on top of a vintage television set

❌ Situational awareness: Disney formally rejected Nelson Peltz's board nominees in a preliminary proxy statement. 

@tim_bays: "Self Reliance" on Hulu. I'll now forever think twice about getting into a limo with Andy Samberg.

@kerrymflynn: "The Beekeeper" at AMC Theatres. I'll watch anything Josh Hutcherson is in. 

✏️ Thanks to Michael Flaherty for editing and Katie Lewis for copy editing this newsletter.

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January 17, 2024

1 big thing: Amazon saves Diamond