Sinclair Broadcast Group has entered into an agreement to purchase the stock of Tennis Channel for $350 million, the company announced Wednesday.
Sinclair will benefit, however, from over $200 million of Tennis net operating losses which Sinclair will be able to carry forward to reduce future tax payments, the present value which Sinclair estimates to be worth approximately $65 million.
Tennis Channel is the only 24-hour, television-based multimedia destination dedicated to both the professional sport and tennis lifestyle.
The Tennis Channel, which includes over-the-top subscription services TC Plus and TV Everywhere, has rights to 90 percent of all the televised tennis in the U.S. and features comprehensive coverage including the top 100 tournaments in the sport and more.
Sinclair has already negotiated agreements with a number of multi-channel video programming distributors which, following Sinclair’s acquisition, will increase carriage of Tennis from approximately 30 million homes to approximately 50 million homes.
The transaction, which is subject to antitrust regulatory approval and other customary closing conditions, is expected to close during the first quarter of 2016 and will be funded through cash on hand and a draw on the Company’s revolving line of credit.
The acquisition is the second high-profile media transaction to be announced on Wednesday, with Nexstar Broadcasting announcing they will acquire Media General for $4.6 billion.