US pay-television broadcaster Tennis Channel could dramatically expand its distribution, possibly prompting a sale by its owners, if it is successful in a case pending before the Federal Communications Commission, the country’s media regulator.
The New York Post reports that success in the FCC case would see the channel’s distribution rise from 34 million homes to more than 50 million – enhancing its value and leading its owners to consider a sale. With the expanded distribution platform, the value of the Tennis Channel could rise from $300-$400 million (€238-€317 million) up to about $1 billion, the newspaper said.
The FCC case stems from an administrative law judge’s December ruling that pay-television provider Comcast had to put Tennis Channel on its digital basic tier alongside the Comcast-owned Golf Channel. Tennis Channel currently resides on Comcast’s digital sports tier, a smaller tier. The FCC requested a stay of the decision in order to ensure the ruling would hold up under greater scrutiny. The newspaper said an FCC ruling in Tennis Channel’s favour is “likely”.
However, the administrative law judge’s decision is likely to face another hurdle, as Comcast is challenging it.
Tennis Channel is part-owned by an investor group that includes Apollo Partners, Bain Capital, Battery Ventures, CCMP Capital Advisors, Columbia Capital. US tennis’ governing body the USTA, and other individual investors also have stakes.