In case you think TV networks have gone just about as far as they can with their investment in sports, think again. MediaPost reports that media companies may be ready to become even more invested in new enterprises related to sports organizations.
“For example, Walt Disney has inked a deal to acquire a one-third stake in the video-streaming technology services division of MLB Advanced Media for $3.5 billion, which is jointly owned by the 30 baseball teams,” the story reports. “Disney also has a four-year option to acquire an additional 33% piece in the digital division of Major League Baseball.”
Sports continues to be lucrative for the TV networks, with sports TV advertising rising by almost 10% in each of the past few seasons, the story notes.
“We have seen big ownership deals with media companies in the past — Turner Broadcasting, for one, which owns the Atlanta Braves and Atlanta Hawks,” the report notes. “But we are not sure major TV/media companies will continue to pursue actual equity in sports teams, or whether professional sports leagues — or existing owners of teams — will look to make those offers.”