After months of speculation, Rupert Murdoch's 16-year-old equal joint venture (JV) with sports broadcaster ESPN has broken up. STAR will buy out ESPN's 50 per cent equity stake in the JV, ESPN-STAR Sports (ESS).
The deal will allow Murdoch's News Corp to fully own and operate ESS businesses in Asia and own lucrative properties like the ICC World Cup, the English Premier League and Formula 1. In April, STAR India had decided to bid on its own than through the JV and won the Board of Control for Cricket in India's (BCCI) media rights to matches played in India for a staggering Rs 3,851 crore (Rs 38.51 billion). Experts said that was a clear indication the two were parting ways.
"News Corporation's acquisition of the interest of ESS that we did not already own continues the programme of simplifying our operating model, consolidating our affiliate ownership structures, and furthers our commitment to delivering incredible sports programming to consumers across the globe, and particularly enhancing our position in sports programming in emerging markets," said James Murdoch, deputy chief operating officer, chairman & CEO International, News Corp.
The move will provide ESPN more flexibility in future, with the support of Walt Disney's overall strategy in Asia. Internationally, Disney controls a majority interest in ESPN Inc. However, analysts say the move will simply mean ESPN would have to start from scratch if it wants to enter the Indian sports channel business on its own. Most of the marquee sporting properties are either with ESS or other Indian channels.
"After 16 years of jointly managing ESS, we have decided to independently pursue future opportunities in Asia," said John Skipper, president of ESPN and co-chairman, Disney Media Networks.
ESPN will continue to own ESPN-branded digital businesses like ESPN Cricinfo, ESPNFC and ESPN Mobile in the Asian market.
As part of the deal, Peter Hutton, senior vice-president, sports, FOX International Channels, will take over as ESS managing director from Manu Sawhney, who was with the company for 16