ESPN is set to invest nearly $5.6 billion in its SportsBusiness brand, a new online platform that will give fans access to sports, entertainment, events and content in the sports industry.
The investment will also include the acquisition of the company’s portfolio of properties including ESPN Deportes, ESPN Deports, ESPN Insider, ESPN Classic, ESPN Fantasy, ESPN Analytics, ESPN Originals and ESPN SportsCenter, and the purchase of the sports business platform SportsBusiness.
SportsBusiness, which will also become a division of ESPN’s sports division, will be available for consumers to use in a variety of ways, including mobile apps and on ESPN websites, ESPN Sportscenter, and in ESPN Insider.
The $5B investment includes $2.8 billion in cash, $4.6B in non-cash stock and $1.6BN in debt, with $400 million of the money in the first year.
The company is expected to report first-quarter results later this year.
“We’re delighted to have SportsBusiness become part of ESPN, a key part of our portfolio of businesses, and look forward to delivering great experiences for fans and businesses around the world,” said ESPN president David Madden in a statement.
“This will help us provide a deeper and broader customer experience that will delight our fans and provide them with access to the most popular sports content on the web and on mobile devices.
Sports Business will become part a larger investment portfolio that also includes the acquisition and expansion of ESPN International, ESPN’s global brand network, ESPN Publishing, ESPN Films and ESPN Sportswriters.”
SportsBusiness will be owned by ESPN. “
The combined investment will deliver a broad suite of benefits for our fans.”
SportsBusiness will be owned by ESPN.
The deal, which is expected by the end of the year, is expected give the sports giant access to over 200 million unique monthly visitors, which ESPN expects to grow to about 3.5 billion by 2020.