Amazon (AMZN) is reportedly in talks to invest in bankrupt Diamond Sports Group (DSG) as the tech giant looks to become a bigger player in the world of sports streaming.
According to the Wall Street Journal, the two entities are “actively” in negotiations regarding a strategic investment and multiyear streaming partnership. If a deal is made, Amazon’s Prime Video service would become the official streaming home for Diamond’s games.
Diamond, a regional sports network (RSN) operator and subsidiary of Sinclair Broadcast Group, filed for Chapter 11 bankruptcy protection in March. The company is currently in court proceedings until a decision is made about Chapter 11 versus liquidation.
Diamond acquired the the broadcasting rights for 42 teams across MLB, NBA, and NHL in a $9.6 billion deal with Fox back in 2019. But the struggling RSN took on more than $8 billion of debt in order to do so, which, coupled with overall cable declines, led to its March filing.
Amazon shares ticked up 3% while shares of Sinclair (SBGI) inched up more than 2%. Neither company immediately responded to Yahoo Finance’s request for comment.
Amazon, like other tech giants, has been more aggressive when it comes to streaming deals over the past several years — especially for sports.
Most recently, Amazon debuted the first Black Friday NFL game. The company reportedly charged $880,000 for a 30-second ad spot, more than double the traditional rate for Thursday Night Football games, according to AdAge.
Amazon agreed to spend $1 billion annually for its 11-year NFL Thursday Night Football deal while Google’s YouTube (GOOG, GOOGL) coughed up a reported $2.5 billion to acquire the sought-after rights to NFL Sunday Ticket.
The deals come as old-school media grapples with steep streaming losses and major declines in linear advertising revenue. Cord-cutting has accelerated, with linear TV viewership falling below 50% for the first time in July.
Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on Twitter @allie_canal, LinkedIn, and email her at [email protected]
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