Disney’s $10.6 Billion Sale of 21 Regional Sports Networks to Sinclair Broadcast Group

On May 3, 2019, The Walt Disney Company (“Disney”) and Sinclair Broadcast Group, Inc. (“Sinclair”) announced that they have entered into a definitive agreement under which Sinclair will acquire the equity interests in 21 Regional Sports Networks (the “RSNs”) and Fox College Sports for a total enterprise value of $10.6 billion. Cravath is representing Disney in connection with the transaction.

The RSN portfolio is the largest collection of RSNs in the marketplace today, with an extensive footprint that includes exclusive local rights to 42 professional teams consisting of 14 Major League Baseball teams, 16 National Basketball Association teams, and 12 National Hockey League teams. The RSNs were acquired by Disney in its acquisition of Twenty-First Century Fox, Inc.

The Cravath team is led by partners Faiza J. Saeed and George F. Schoen and includes associates Matthew M. Kelly, Justin B. Stein, DongHwa Kim and Michael Zhang on M&A matters; partners Stephen L. Gordon and Lauren Angelilli, senior attorney Andrew Carlon and associate Rebecca L. Fine on tax matters; partner Jonathan J. Katz and associate Daniel P. Herrmann on executive compensation and benefits matters; partners Michael S. Goldman and Nicholas A. Dorsey and associate Richard E. Schwartz on financing matters; partner David J. Kappos and associate Kathryn‑Ann Stamm on intellectual property matters; partner Matthew Morreale on environmental matters; and senior attorney Joyce Law on real estate matters. Mose Hogan III also worked on M&A matters.