Amazon ‘weighing up’ Diamond Sports Group investment

Finance News

Amazon is in talks with Diamond Sports Group operator of Bally Sports regarding a strategic investment into the beleaguered regional sports giant, according to Wall Street Journal.

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

Diamond Sports was formed in 2019 following the acquisition of nearly two dozen Fox Sports-branded channels by Sinclair Broadcast Group. The channels were divested by the Walt Disney Company in order to satisfy regulatory conditions associated with its purchase of certain film and TV assets from 21st Century Fox that same year.

Diamond Sports operates two dozen channels under the Bally Sports name as part of a licensing agreement with the gambling and entertainment company.

Despite launching a standalone streaming version of its sports channels in various markets, Diamond Sports struggled to overcome billions of dollars in debt, with the subsidiary declaring bankruptcy in March and skipping out on payments to the various sports leagues and teams who long ago sold their telecast rights to the group.