FOX CEO Lachlan Murdoch outlines expectations for joint streaming venture. Plus: Bally Sports will rebrand following the 2024 MLB season; Warner Bros Discover and Paramount end merger talks.
Murdoch sets expectations for joint venture
Fox Corp. CEO Lachlan Murdoch shared at a conference hosted by Morgan Stanley on Monday that the company is planning for five million subscribers to join its joint streaming venture with Disney and Warner Bros Discovery in its first five years. Murdoch reiterated that the service is aimed at people who have never subscribed to the traditional cable bundle, thus the reasoning for the modest benchmark. For comparison, around 70 million households are currently subscribed to a traditional pay-TV bundle.
The FOX CEO also offered some insights into pricing for the joint venture, which he said will “be in the higher ranges of what people have talked about,” possibly north of $50 per month. Additionally, he indicated that adding regional sports networks to the service are not in the near term plans. Notably, Murdoch also stated he did not believe the joint venture will face regulatory hurdles. (Deadline, 3.4)
Bally Sports RSNs to rebrand
The 19 Bally Sports-branded RSNs will rebrand after the 2024 MLB season as part of Diamond Sports’ reorganization plan, according to a filing in bankruptcy court Friday. The Sinclair Broadcasting-owned Diamond Sports originally agreed to a naming-rights deal with Bally’s Corp. in November of 2020, before launching the Bally Sports RSNs in September 2022.
While waiting for court approval of its bankruptcy reorganization, Diamond has seemingly set themselves up for a pivotal 2024. Along with finding a new naming-rights partner, the company will have to facilitate agreements with its three largest video distributors: DirecTV, Charter and Comcast. Though Diamond will no longer have to relinquish its NBA and NHL rights following the 2024 seasons as originally planned, they will still need to renegotiate with teams whose contracts are already set to expire. This includes the Cleveland Guardians, Minnesota Twins and Texas Rangers, which Diamond negotiated one-year, fee-reduced deals with. (Sportico, 3.1)
WBD and Paramount end merger talks
Warner Bros Discovery has halted negotiations to acquire Paramount Global, per a CNBC report last week. Warner Bros Discovery began preliminary discussions with Paramount in December, and more serious discussions in January, before talks stopped. Paramount has recently been listening to potential offers to purchase some or all of the company’s assets. Notably, David Ellison‘s Skydance Media has been performing due diligence on a possible offer. Media tycoon Byron Allen submitted a $14b offer in January, though many see it as not serious. (CNBC, 2.27)
