Media conglomerate News Corporation has reached a deal to buy out Disney-owned sports broadcaster ESPN’s stake in their jointly-owned pan-Asian sports broadcaster ESPN Star Sports.
The deal was announced today, but is subject to regulatory approvals. The deal was reported exclusively by TV Sports Markets on April 20.
The companies said that the deal would give News Corporation full ownership and operational responsibility of ESPN Star Sports’ operations, while also providing ESPN with “greater independence and flexibility in future support” of Disney’s “overall efforts in Asia.”
“After 16 years jointly managing ESPN Star Sports, we have decided to independently pursue future opportunities in Asia,” John Skipper, president of ESPN and co-chairman of Disney Media Networks, said. “We look forward to continuing to serve Asian sports fans through ESPN-branded digital businesses like ESPNCricinfo, the leading digital cricket brand in the world, ESPNFC and ESPN Mobile.”
James Murdoch, deputy chief operating officer and chairman and chief executive of the international division at News Corporation, said: “News Corporation’s acquisition of the interest of ESPN Star Sports that we did not already own continues the program of simplifying our operating model, consolidating our affiliate ownership structures, and furthers our commitment to delivering incredible sports programming to consumers across the globe, and particularly enhancing our position in sports programming in emerging markets.”
As part of the deal, Peter Hutton, currently senior vice-president of sports at News Corp subsidiary Fox International Channels, will replace Manu Sawhney as ESPN Star Sports managing director. Sawhney will stay with the company until August 31 in an effort to ensure a smooth transition.