Amazon is reportedly in talks to invest in a bankrupt company

December 19, 2023 08:20 AM AEDT | By Invezz

Amazon is reportedly in talks to invest in a bankrupt company — Image source: Invezz

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 arrives 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 liner television.

Amazon Prime Video will stream all games that Diamond holds if an agreement is signed between the two companies, as per the WSJ reported.

Shares of the tech titan are currently up about 80% versus the start of this year.

Watch here: https://www.youtube.com/embed/aCDcAr5mwUU?feature=oembed

Diamond has support from creditors

Diamond 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 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 (NASDAQ:SBGI) that owns Diamond Sports ended about 2.0% up today.

The post Amazon is reportedly in talks to invest in a bankrupt company appeared first on Invezz

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