Post by ATLinsider on Feb 23, 2006 20:53:04 GMT -3
From The Atlanta Journal-Constitution:
Fox Cable Networks has agreed to buy Time Warner's Turner South, most likely to convert the channel from being a home of Southern-tinged entertainment to a sports-heavy operation anchored by games of three Atlanta professional teams.
The pending sale, which had been expected, was announced Thursday by Fox, a unit of News Corp., and Time Warner's Turner Broadcasting System. People familiar with the deal said the transaction is worth about $375 million, nearly double what one analyst had expected. Additional details about the agreement are likely to be disclosed today.
Assuming the necessary government approvals are received, the deal could be completed in about 60 days. Fox has decided little about its plans to change Turner South, although it's clear the network will be renamed and retooled, probably by mid-year. Fox already serves the region with Fox Sports Net South.
"We've been eyeing Turner South for a long time," said Tony Vinciquerra, president and CEO of Fox Networks Group.
Atlanta-based Turner Broadcasting put Turner South and the Atlanta Braves on the auction block late last year. The network deal was inked by the companies Thursday, after a vote by Time Warner's board.
At $375 million, Time Warner fetched a healthy price. John Mansell, senior analyst with Kagan Research, had predicted the network might sell for $200 million.
"That was really something of a minimum," Mansell said Thursday. He said Fox, by adding Turner South's rights to show Atlanta Braves games to those the network already had, gains a far more attractive set of properties. The change is likely to give Fox leverage in getting more money from cable systems that want to carry the rehabbed Turner South.
Turner Broadcasting, meanwhile, is still searching for an owner for the Atlanta Braves. Fox wasn't interested in buying the Braves, which could fetch $400 million. Atlanta Falcons owner Arthur Blank was among those who put himself in the running, only to break off talks Wednesday because of objections to the price.
Fox has a keen interest in who buys the Braves, but Vinciquerra said he isn't concerned about how the process plays out. "I'm certain that there will be lots of interest in the team and they will end up with a good quality owner," he said.
With Turner South, Fox will have the rights to show all Braves games that aren't televised nationally by ESPN or TBS, which is a Turner network. For the time being, Fox also keeps rights to Turner South's entertainment programs, which include offerings like "Junkin'." Vinciquerra said Fox will keep the rights to some, but not all, of Turner South's non-sports programming long term.
While 7-year-old Turner South has lost money for Turner Broadcasting, Fox believes it can remake the operation as a profitable purveyor of sports programming that will be of extensive interest in Atlanta and the region. Turner South includes rights to carry games for three Atlanta teams: the Braves, Hawks and Thrashers.
Fox is an experienced operator of regional sports networks, or RSNs. Turner South is available in parts of six states and has about 8 million subscribers on various cable systems. FSN South, the nation's largest regional sports network, has about 11 million subscribers.
Vinciquerra said Fox has worked out few details of how Turner South will be revamped. The future of Turner employees who work at Turner South remains unclear. The network is small, with only about 50 staffers. It operates from Turner Broadcasting's sprawling campus in Midtown.
While the likely sale of the Braves has gotten far more attention than the fate of Turner South, Turner Broadcasting has said the driving factor behind putting both properties up for sale was the cable network. When Turner decided the network was expendable, it was logical to dispose of the Braves, given the team's role as a source of programming for the network.
"The terms of the agreement are very favorable for our company," Turner Broadcasting chairman and CEO Phil Kent wrote Thursday in an internal memo to employees. "The financial benefit we realize from the sale of Turner South will be reinvested in ways that drive greater value and growth for Turner Broadcasting."
In purchasing Turner South, News Corp. has made what a deal with an unusually colorful history, given the history of animosity between News Corp. Chairman and CEO Rupert Murdoch and Turner namesake Ted Turner. The Turner South name will be dropped, but a new one hasn't been decided.
"It won't be Murdoch South," Vinciquerra joked.
Fox Cable Networks has agreed to buy Time Warner's Turner South, most likely to convert the channel from being a home of Southern-tinged entertainment to a sports-heavy operation anchored by games of three Atlanta professional teams.
The pending sale, which had been expected, was announced Thursday by Fox, a unit of News Corp., and Time Warner's Turner Broadcasting System. People familiar with the deal said the transaction is worth about $375 million, nearly double what one analyst had expected. Additional details about the agreement are likely to be disclosed today.
Assuming the necessary government approvals are received, the deal could be completed in about 60 days. Fox has decided little about its plans to change Turner South, although it's clear the network will be renamed and retooled, probably by mid-year. Fox already serves the region with Fox Sports Net South.
"We've been eyeing Turner South for a long time," said Tony Vinciquerra, president and CEO of Fox Networks Group.
Atlanta-based Turner Broadcasting put Turner South and the Atlanta Braves on the auction block late last year. The network deal was inked by the companies Thursday, after a vote by Time Warner's board.
At $375 million, Time Warner fetched a healthy price. John Mansell, senior analyst with Kagan Research, had predicted the network might sell for $200 million.
"That was really something of a minimum," Mansell said Thursday. He said Fox, by adding Turner South's rights to show Atlanta Braves games to those the network already had, gains a far more attractive set of properties. The change is likely to give Fox leverage in getting more money from cable systems that want to carry the rehabbed Turner South.
Turner Broadcasting, meanwhile, is still searching for an owner for the Atlanta Braves. Fox wasn't interested in buying the Braves, which could fetch $400 million. Atlanta Falcons owner Arthur Blank was among those who put himself in the running, only to break off talks Wednesday because of objections to the price.
Fox has a keen interest in who buys the Braves, but Vinciquerra said he isn't concerned about how the process plays out. "I'm certain that there will be lots of interest in the team and they will end up with a good quality owner," he said.
With Turner South, Fox will have the rights to show all Braves games that aren't televised nationally by ESPN or TBS, which is a Turner network. For the time being, Fox also keeps rights to Turner South's entertainment programs, which include offerings like "Junkin'." Vinciquerra said Fox will keep the rights to some, but not all, of Turner South's non-sports programming long term.
While 7-year-old Turner South has lost money for Turner Broadcasting, Fox believes it can remake the operation as a profitable purveyor of sports programming that will be of extensive interest in Atlanta and the region. Turner South includes rights to carry games for three Atlanta teams: the Braves, Hawks and Thrashers.
Fox is an experienced operator of regional sports networks, or RSNs. Turner South is available in parts of six states and has about 8 million subscribers on various cable systems. FSN South, the nation's largest regional sports network, has about 11 million subscribers.
Vinciquerra said Fox has worked out few details of how Turner South will be revamped. The future of Turner employees who work at Turner South remains unclear. The network is small, with only about 50 staffers. It operates from Turner Broadcasting's sprawling campus in Midtown.
While the likely sale of the Braves has gotten far more attention than the fate of Turner South, Turner Broadcasting has said the driving factor behind putting both properties up for sale was the cable network. When Turner decided the network was expendable, it was logical to dispose of the Braves, given the team's role as a source of programming for the network.
"The terms of the agreement are very favorable for our company," Turner Broadcasting chairman and CEO Phil Kent wrote Thursday in an internal memo to employees. "The financial benefit we realize from the sale of Turner South will be reinvested in ways that drive greater value and growth for Turner Broadcasting."
In purchasing Turner South, News Corp. has made what a deal with an unusually colorful history, given the history of animosity between News Corp. Chairman and CEO Rupert Murdoch and Turner namesake Ted Turner. The Turner South name will be dropped, but a new one hasn't been decided.
"It won't be Murdoch South," Vinciquerra joked.