Examining the drivers behind News Corp.'s sports net strategy

04/12/2013 | Variety (subscription required)

News Corp. spent billions to secure long-term rights to Major League Baseball, NASCAR and the NFL before going public with plans for its Fox Sports 1 national network, to avoid tipping off the leagues and rivals of its plans, writes David Bank, senior equity media analyst for RBC Capital Markets. "If the company announced FS1 before it had all the sports rights it needed, that could have driven up the rights costs and gotten other companies with 24-hour sports networks to bid more aggressively," Bank writes.

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