Paramount is valuing Discovery Global at $0/share; ESPN bids farewell to two longtime tennis analysts; and YES Network and Comcast reportedly reach a new long-term distribution agreement. Plus news on Jimmy Zasowski, the Pittsburgh Post-Gazette, Ryan Smith and Sactown Sports 1140.
Paramount valuing Discovery Global at $0/share
Paramount on Thursday said that it values Discovery Global, the upcoming spinoff company slated to hold global networks owned by Warner Bros. Discovery, at $0/share. The company made the comments as part of a broader statement reaffirming its $30/share hostile bid for the entirety of WBD, which it continues to maintain is “superior” to the winning Netflix bid for the Warner Bros. studios, HBO and HBO Max. The Netflix bid would leave WBD shareholders with ownership in Discovery Global, a stub that Paramount valued at $1/share last month before Comcast’s cable spinoff Versant launched on the Nasdaq.
In valuing shares of Discovery Global at $0.00, Paramount is assuming a forward EBITDA multiple of 3.8x, which would be in line with Versant’s share price and enterprise value at market close on Wednesday. Paramount acknowledged that “Discovery Global could trade with up to ~$0.50 per share of embedded M&A option value,” but also argued that there are reasons why Discovery “should trade at a discount to Versant,” pointing to financial metrics and a “less attractive portfolio.” Paramount outlined Discovery’s net debt of about $15 billion at 3.9x NTM leverage, compared to $2 billion in net debt at 1.3x NTM leverage for Versant.
Paramount also cited analysis arguing that Netflix stock consideration is equivalent to $4.17 per share, not the $4.50 outlined in the original transaction. PSKY’s bid places Warner Bros. Discovery at an enterprise value of $108.4 billion and contains “an irrevocable personal guarantee” from Larry Ellison to backstop proposed equity financing. The company initially made three unsolicited bids for WBD before the formal bidding process commenced in November. It remains unknown if Paramount would consider raising its bid ahead of an expected shareholder vote projected to occur later in the spring or early in the summer.
In an SEC filing Wednesday, WBD wrote that “PSKY has been aggressive in its engagement with WBD, has retained litigation counsel and has threatened litigation.”
YES Network, Comcast reportedly reach new distribution agreement
YES Network and Comcast have reached a new “full distribution agreement” that will keep live game broadcasts on expanded basic cable in the New York area, according to a report by Eric Fisher of Front Office Sports. The two entities had been unable to reach a long-term accord over the last year, instead reaching a series of shorter pacts.
Fisher explained that Comcast was looking to put YES Network “on a more expensive and limited premium programming tier,” which would align with distribution of other RSNs around the country. YES, however, is said to have noted that SportsNet New York (SNY) is partially owned by Comcast and has not faced “a similar tiering push.” Lauren Thomas of The Wall Street Journal reported in April that SNY was “exploring potential deals including an outright sale,” and that the network had hired bankers to discover “new financial backers.”
YES Network and Comcast avoided an outright blackout of programming in late March, reaching a deal to extend the deadline until the month’s conclusion. The two companies announced that they had “reached an agreement for continued distribution of the YES Network” a few days later.
YES Network first launched in 2002 with Yankees and Nets games, but Cablevision subscribers were unable to access the RSN for the first year. The Walt Disney Company sold an 80% stake in the channel in 2019 to Yankee Global Enterprises, Sinclair, Amazon and other investors as required by the U.S. Department of Justice before completing its acquisition of 21st Century Fox. This divestiture, however, was separate from Sinclair acquiring the 21 Fox-branded RSNs from Disney in a $9.6 billion agreement.
ESPN tennis analysts Gilbert, Shriver depart network
ESPN tennis analysts Brad Gilbert and Pam Shriver “are no longer with the network after decades of contributing on broadcast coverage, an ESPN spokesperson confirmed to Sports Media Watch. Both analysts acknowledged their time with the network in social media posts, and the ESPN spokesperson expressed gratitude “for their many years of collaboration.” Gilbert and Shriver were not part of the talent roster for ESPN coverage of the Australian Open announced earlier this week. ESPN added Katie George and Malika Andrews as hosts for weeks one and two of the tournament, respectively, and the network also moved Chris McKendry to play-by-play announcing.
Gilbert initially joined ESPN in 2004, but left to coach Andy Murray before returning to television a few years later. Shriver started working with ESPN in 1990 as an active player. Both analysts have been regular contributors to ESPN coverage of the Australian Open, Wimbledon and US Open tournaments.
In addition to Gilbert and Shriver, ESPN analyst Darren Cahill was also not part of the Australian Open roster for this year. The ESPN spokesperson said that it is to be determined if Cahill will be working with the network later in the year. Cahill has been a tennis analyst for ESPN since January 2007, making his network debut on Australian Open coverage. It should be noted that Cahill has coached Jannik Sinner to victories in the last two editions of the Grand Slam tennis tournament.
ESPN has covered the Australian Open since 1984 and signed a new agreement Tennis Australia to present the major tournament that expires in five years. This year’s tournament commences with qualifying rounds starting on Sunday and concludes with the women’s singles and men’s singles championships on Saturday, Jan. 31 and Sunday, Feb. 1, respectively.
Plus: Jimmy Zasowski, Pittsburgh Post-Gazette, Ryan Smith, Sactown Sports 1140
- Jimmy Zasowski has been promoted to president of platform distribution for Disney Entertainment and ESPN, it was announced Thursday. Zasowski, who worked alongside Sean Breen on negotiations with YouTube TV following the departure of Justin Connolly, will be responsible for leading distribution and monetization surrounding direct-to-consumer services for The Walt Disney Company, along with its linear networks, ABC-owned television stations and various other distribution outlets.
- Earlier this week, Block Communications revealed that the Pittsburgh Post-Gazette will publish its final edition on Sunday, May 3 after 240 years of local coverage. The decision occurred hours after the U.S. Supreme Court rejected the publication’s request to stay the U.S. 3rd Circuit Court of Appeals order that required the paper to restore a previously agreed upon “contractual health care plan.”
- Ryan Smith anchored his final edition of “SportsCenter” on ESPN this week, revealing that he was moving on from the program after six years. No announcement has been made about Smith’s future with ESPN, where he has been full time since 2017 and contributed to shows such as “Outside the Lines” and “E:60.”
- Kayla Anderson and Matt George will be the new midday radio duo at Sactown Sports 1140 in Sacramento, Calif. starting Monday, Jan. 12, moving into the timeslot previously held by Allen Stiles, who is headed to afternoon drive that day as well. George has worked in the city as an anchor at ABC10, and Anderson arrives after a stint in morning drive on 104.5 The Zone in Nashville, Tenn.
