Sony Acquires AT&T’s 42% Game Show Network Stake In Deal Worth $500M
In recent news, Sony has acquired AT&T’s 42% stake in the Game Show Network. AT&T is reported to make $380 million from the stake sale as well as selling dividends of about $130 million, coming to a grand total of a $500 million evaluation. The entertainment company is said to completely own 100% of the company and will continue to be carried on AT&T’s DirecTV.
AT&T is still recovering from its $81 billion acquisition of Time Warner and by selling the GSN, this gives the company a chance to pay down debt and generate cash from non-strategic assets.
Sony’s Entertainment chairman stated how the the acquisition will allow the brand to advance the ever-growing gameshow business, aligning towards their strategy of developing targeted direct-to-consumer offerings. GSN’s programming portfolio includes notable shows such as Jeopardy! and Wheel of Fortune, but also airs syndicated titles such as America Says, The Chase, Common Knowledge and Catch 21, and Family Feud.
One important facet to the deal on both sides is how AT&T will continue to air GSN shows on DirectTV and that Sony has full creative control. Sony has certainly had a good year in terms of striking these massive deals. They held firm in not giving in to Disney’s oppressive negations and now they own a major stake in a very popular television network. Already in the video game, film, and now gameshow industry, it’s interesting to see the vast array of content Sony now has at their disposable. The variety infers just how Sony may be looking down the line when potentially growing the company.