(New York) Amazon will invest $115 million in the American network of local television channels Diamond Sports Group, a major holder of sports rights in the United States, a sign of the technology giant’s appetite for live sports.
The entry of Amazon into the capital as a minority shareholder is part of the restructuring of Diamond Sports, under safeguard procedure since last March.
The group had to file for bankruptcy, crushed under the weight of a colossal debt contracted by the television operator Sinclair during the purchase of Diamond Sports from Disney in 2019.
Concretely, the e-commerce juggernaut will acquire $115 million worth of bonds convertible into shares. If he converts all of these securities, he will hold a 15% stake.
The agreement also provides for Amazon Prime Video to offer Diamond Sports group channels on its streaming platform.
Diamond Sports is the leading local sports network in the United States. It holds the regional broadcast rights to more than half of the American teams playing in the NBA (basketball), MLB (baseball) and NHL (ice hockey).
Several streaming players have started to position themselves in recent years in the world of live sports, a niche with high audience potential.
Amazon has notably acquired part of the rights to the English Premier Soccer League, the French Ligue 1, the Roland-Garros tennis tournament and the NFL.
Diamond Sports channels will be available on Prime Video for an additional subscription.
Questioned by AFP, an Amazon spokesperson clarified that each channel will only be accessible for streaming to Internet users located in its region of operation.
These channels only hold regional broadcasting rights, and not national or international, which are controlled by other broadcasters.
Diamond Sports Group also announced Wednesday that it had reached an agreement with creditors holding a majority of its debt to restructure it. This clearance plan must allow it to exit the safeguard procedure.
The plan also calls for the split between Diamond Sports and Sinclair.