Amazon is currently considering investing in sports content as part of its expansion into the streaming and sports industries. The e-commerce giant is in negotiations with Diamond Sports Group (DSG) to potentially acquire the regional sports programmer.
The DSG, which filed for bankruptcy earlier in 2023, owns local rights to 40 major sports teams across the country, including teams in Major League Baseball, the National Basketball Association, and the National Hockey League. If the deal goes through, Amazon’s Prime Video platform could become the streaming home for Diamond’s games.
The move comes at a time when traditional cable subscriptions are declining, and consumers are favoring streaming services. This shift has led to financial challenges for the sports network operator, prompting its decision to file for bankruptcy in an effort to restructure its more than $8 billion debt.
Despite this, the DSG has managed to secure support from a group of creditors for the negotiations with Amazon. Some creditors are in favor of winding down the business, while others prefer to see the DSG renewing negotiations on existing contracts to move towards solvency.
In addition to potentially acquiring DSG, Amazon is also looking to secure a deal to broadcast NBA games, following effective deals with MLB and NBA streaming services. This move would further bolster Amazon’s presence in the regional sports network business, as it already has a stake in the YES Network covering the New York Yankees and Brooklyn Nets.
The negotiations between Amazon and DSG represent a significant potential investment for Amazon, as the company continues to expand its reach in the streaming and sports industries. If the deal goes through, it could have a substantial impact on the future of sports content distribution and streaming services.