The partners aren’t saying how much they’re kicking in, but the global venture will invest “primarily in sports and entertainment related media assets.” They’re targeting growth equity investments of as much as $50M in private companies and, they add, “have the capacity to make larger investments as needed.” They see “many traditional and digital media properties that complement the NFL‘s business and can add lasting value,” says Providence Senior Managing Director Paul Salem. Each will own equity in the partnership and run it jointly. Providence has a lot of experience in media; it was a major investor in Hulu, the YES Network and Warner Music and backs Univision and The Chernin Group. “We selected Providence as our partner because they share our vision of the opportunities and bring exceptional experience and relationships in the industry,” NFL exec Eric Grubman says. “Together we will focus on innovative media assets that create meaningful value for both the business of the NFL and our fans.”
Newport is Providence Equity’s holding company for the collection of TV stations the private equity firm bought in 2007 from Clear Channel. Investors seem to like Nexstar’s $285.5M agreement today for 12 Newport stations; Nexstar shares are +5.2% at mid-day. Sinclair is more complicated: In addition to the $412.5M it’s paying for six Newport stations, Sinclair agreed today to pay $40M for Tampa-based Bay Television. Sinclair shares are -1.6%. Privately held Cox is paying $302M for its four stations.
Here’s the release:
Longtime Hollywood mogul Peter Chernin‘s indie company has just received a new infusion of capital to help with his goal of expanding into a global media company “across all fronts with this additional expertise and resources”. Led by Providence Equity Partners, the investors are taking what’s being called a “significant minority equity stake” in his television/movie/Internet company The Chernin Group. The official announcement will be made Monday morning. Financial terms were not disclosed, but Deadline has learned the investment is $200M. Chernin and Providence CEO Jonathan Nelson became chummy while they worked together to establish the online video site Hulu as a joint venture with NBCUniversal. The pair tell the Financial Times they also looked at making a bid for Yahoo together over a year — but then decided against it. They say the new partnership would have the resources to pursue “any deal of any size” around the world, from making multibillion-dollar bids to incubating start-ups. And they say their first deals are “very close” and could be announced within weeks.
News Corp COO Chase Carey said during the company’s conference call Wednesday that the ongoing Hulu auction is “progressing largely as planned,” but for the most part streaming-video site co-owners News Corp, Disney, Comcast and Providence …