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Two months after Star India bagged the lucrative Indian cricket media rights, its parent company News Corporation is gearing up for an aggressive play in sports broadcasting in Asia. News Corporation has decided to buy ESPN's 50 per cent stake in their 16-year-old joint venture, ESPN Star Sports (ESS).
In a statement, News Corporation said that it had signed a definitive agreement under which a unit of the company will buy ESPN's stake in ESS.
“The transaction will allow News Corporation units to own and operate all of the ESS businesses while providing ESPN more independence and flexibility in future support of the Walt Disney Company's overall efforts in Asia,” it said. The transaction is subject to regulatory approvals.
Mr James Murdoch, Deputy Chief Operating Officer, and Chairman & CEO International, of News Corporation described the development as “simplifying our operating model, consolidating our affiliate ownership structures and particularly enhancing our position in sports programming in emerging markets.”
ESPN STAR Sports is a 50:50 joint venture between the Walt Disney Company and News Corporation Ltd. The venture has a number of television channels (ESPN, Star Sports, Star Cricket, ESPNEWS, ESPN HD, STAR Cricket HD) as well as digital content services and an on-ground event management company.
In April, Star India had bagged the Board of Control for Cricket in India (BCCI) cricket media rights for six years for Rs 3,851 crore, and had said it would collaborate with ESPN Star Sports to exploit these rights.
“After 16 years of jointly managing ESS, we have decided to independently pursue future opportunities in Asia,” said Mr John Skipper, President of ESPN and co-chairman, Disney Media Networks. He added that the company will be serving Asian sports fans through ESPN-branded digital businesses such as ESPNCricinfo, ESPNFC and ESPN Mobile.
Business as usual
When asked for clarification on ownership and branding of the three channels in India, an ESPN Star Sports Asia spokesperson said, “It is business as usual for ESS and it will continue to be jointly managed by ESPN and News Corporation until the transaction closes.”
According to the spokesperson, currently ESS is geared to maximise the sporting content opportunities which includes London 2012 Olympics , ICC World Cup T20 and India vs. New Zealand cricket series as well as the tours of England and Australia to India.
Mr Peter Hutton who is currently Senior Vice-President, Sports, Fox International Channels, will take over from Mr Manu Sawhney who is currently the MD of ESS. Mr Sawhney will be staying with the company until August 31.
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