Amazon (AMZN) is reportedly in talks to invest in bankrupt Diamond Sports Group (DSG) as the tech giant looks to become a bigger player in the world of sports streaming.
According to the Wall Street Journal, the two entities are “actively” in negotiations regarding a strategic investment and multiyear streaming partnership. If a deal is made, Amazon’s Prime Video service would become the official streaming home for Diamond’s games.
Diamond, a regional sports network (RSN) operator and subsidiary of Sinclair Broadcast Group, filed for Chapter 11 bankruptcy protection in March. The company is currently in court proceedings until a decision is made about Chapter 11 versus liquidation.
Diamond acquired the the broadcasting rights for 42 teams across MLB, NBA, and NHL in a $9.6 billion deal with Fox back in 2019. But the struggling RSN took on more than $8 billion of debt in order to do so, which, coupled with overall cable declines, led to its March filing.
Amazon shares ticked up 3% while shares of Sinclair (SBGI) inched up more than 2%. Amazon declined to comment as it “doesn’t comment on rumors and speculation.” Sinclair Group also declined comment.
Amazon, like other tech giants, has been more aggressive when it comes to streaming deals over the past several years — especially for sports.
Most recently, Amazon debuted the first Black Friday NFL game. The company reportedly charged $880,000 for a 30-second ad spot, more than double the traditional rate for Thursday Night Football games, according to AdAge.
Amazon agreed to spend $1 billion annually for its 11-year NFL Thursday Night Football deal while Google’s YouTube (GOOG, GOOGL) coughed up a reported $2.5 billion to acquire the sought-after rights to NFL Sunday Ticket.
The deals come as old-school media grapples with steep streaming losses and major declines in linear advertising revenue. Cord-cutting has accelerated, with linear TV viewership falling below 50% for the first time in July.