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Amazon.com Inc (AMZN) is in focus on Monday following a report that it plans on investing in Diamond Sports Group.
What’s in it for Amazon?On Monday, anonymous sources told the Wall Street Journal that Amazon is in talks to make a strategic investment in the Norfolk-headquartered firm to secure more sports media rights.The announcement arrived a month after Diamond Sports filed for Chapter 11 to eliminate over $8.0 billion of outstanding debt as it continued to wrestle with a shift away from linear television.Amazon Prime Video will stream all games that Diamond holds if an agreement is signed between the two companies, as per the WSJ report.Shares of the tech titan are currently up about 80% versus the start of this year.
Diamond has support from creditorsDiamond Sports will need approval from the bankruptcy court for such a deal with Amazon.com Inc. It has already secured support from a bunch of its creditors, though – the WSJ report added.Note that the sports broadcasting company has rights to twelve major league baseball teams, fifteen national basketball teams, and some of the national hockey league teams as well.Amazon.com Inc. ended its latest reported quarter with close to $54 billion in cash and equivalents. The Nasdaq-listed firm has not so far commented on what the Wall Street Journal reported on Monday.Shares of Sinclar Inc (SBGI) which owns Diamond Sports ended about 2.0% up today.More By This Author:Netflix Stock Price Forecast: Morgan Stanley Sees A 17% Upside U.S. Steel Stock Jumps Another 25% USD/JPY Signal: ING Analyst Gives Forecast Ahead Of BoJ Decision