Could A Black-Owned Firm Become A Strategic Partner With Disney For ESPN?
HOUSTON — "No comment," we were told by a billionaire power broker over the weekend. Why?
HBCU Legends reached out to AMG and Group Black to inquire about their interest in Disney's ESPN, but the firms declined to comment. It is believed that both have expressed an interest in becoming a strategic partner with Disney for the sports broadcasting mammoth, although no official statement has been made.
AMG AND GROUP BLACK
Black media moguls Byron Allen (AMG) and Tyler Perry (Tyler Perry Studios) are transforming the U.S. media landscape with blockbuster deals. Equally important is Travis Montaque, CEO of Group Black, is rumored to be making an offer for an equity share in The Arena Group, which publishes Sports Illustrated and its associated properties.
Sports commentator Stephen A. Smith speaks during a live taping of ESPN's \"First Take\" at Florida A&M University's new Will Packer Performing Arts Amphitheater as part of the school's homecoming festivities Friday, Oct. 29, 2021.
Montaque has made previous efforts to purchase an established media company in an attempt to broker a deal for Black Entertainment Television (BET). AMG was a player in the bidding process before Paramount Global accepted Tyler Perry Studios' bid.
ESPN is a prime candidate for acquisition since Disney's CEO Bob Iger announced during a CBNC interview that the corporation is interested in "selling a portion of its equity in ESPN to a strategic partner." Moreso, Front Office Sports' Andrew Cohen reported, "Disney held early conversations with potential partners that could improve ESPN's streaming service by extending its distribution and adding content," per Disney CEO Bob Iger.
DISNEY'S EARLY TALKS, POSSIBLE PARTNERS
Iger also revealed that "Disney held early conversations with potential partners that could improve ESPN's streaming service by extending its distribution and adding content," according to Front Office Sports' Andrew Cohen.
This weekend, FOS senior writer Mike McCarthy spoke about the Disney dilemma regarding ESPN on Front Office Sports Today podcast. Disney has been seeking a "strategic alliance for years with a FanDuel, Draft Kings, or a Caesar's," McCarthy said. "So if I were to look at the first set of candidates, I would say some sort of strategic alliances and investments with a big sports betting giant or Fanatics as a possible wildcard."
Why Fanatics? Fanatics has become more than a sports merchandising company after making a $225 million offer for PointsBet's U.S. operations. Disney's other investment partners could include Amazon, Comcast, Omaha Production (Peyton Manning is the owner), and the Saudis.
If McCarthy's take on the situation has merit, then it would be difficult for AMG and Group Black to be under consideration by Disney. Having black-owned companies with a seat at the table is a good sign for future media deals worth billions. For black media to continue its growth into major markets, they must view forming strategic alliances or bidding together for equity shares as the next maneuver against entities with more substantial portfolios.
Will Allen's AMG and Montaque's Group Black remain players in the media acquisitions?
We shall see.