News Corp. has acquired a 49% stake in YES, the Yankees Entertainment and Sports Network, and extended a TV rights deal that will keep the Bronx Bombers' baseball games on the network through 2042.
Financial details of the deal announced Tuesday were not disclosed.
YES has been valued at around $3 billion, although News Corp. would have paid less than $1.5 billion for its stake if assumption of the operation's debt was involved in the transaction.
The regional sports network provides local television coverage of New York Yankees baseball and Brooklyn Nets basketball. The 10-year-old channel is available in about 9 million homes in New York, Connecticut, New Jersey and parts of Pennsylvania.
The deal substantially reduces stakes of YES' current owners -- the Yankee Global Enterprises and investment banking firm Goldman Sachs.
Having an ownership stake in an important regional network and a 30-year TV rights deal locked up will give the global media company, controlled by Rupert Murdoch, a hedge against the skyrocketing costs of sports rights fees.