In a potential move that would further solidify its presence in the sports content industry, Amazon is reportedly in talks to invest in Diamond Sports Group, the largest regional-sports programmer in the country.
Diamond Sports Group, which carries the games of over 40 major sports teams, filed for bankruptcy earlier this year but is now negotiating with Amazon for a strategic investment and a multiyear streaming partnership, The Wall Street Journal (WSJ) reported Monday (Dec. 18), citing unnamed sources.
Reached by PYMNTS, an Amazon spokesperson declined to comment on the report.
Diamond Sports Group’s parent company, Sinclair Broadcast Group, did not immediately reply to PYMNTS’ request for comment.
If an agreement is reached, Amazon’s Prime Video platform would become the streaming home for Diamond’s games, according to the report.
Diamond holds the local rights to about half of the teams in Major League Baseball, the National Basketball Association, and about a third of the National Hockey League teams, the report said.
While Diamond would continue operating its cable networks through existing partnerships, it would expand its streaming presence through Amazon, per the report.
The financial details of the potential investment are not yet clear, but the talks have received support from a select group of creditors, according to the report. However, any transaction would still require bankruptcy court approval and could fall through.
If a deal is struck, it would be a significant move for both Diamond Sports Group and Amazon, the report said.
For Diamond, partnering with Amazon would provide a lifeline to continue its operations and avoid liquidation, per the report. The company has faced challenges due to cord-cutting, as consumers increasingly opt for streaming services over traditional cable subscriptions. This shift has resulted in declines in subscriber revenue and affected advertising rates for Diamond.
For Amazon, the eCommerce giant’s aggressive push into sports content would be further advanced by partnering with Diamond, the report said. Amazon already has rights to stream NFL games and is expected to pursue a deal to carry NBA games. Adding popular local teams through Diamond would enhance its Prime Video platform, which already has deals with league-owned streaming services from MLB and NBA.
Amazon has previously entered the regional-sports-network business with a stake in the YES Network, the TV and streaming home of the New York Yankees and Brooklyn Nets, according to the report.
In one recent development around its sports content, Amazon featured in-game shopping opportunities during its Black Friday football game.
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