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Fox Sports Net to launch
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June 23, 1997: 1:40 p.m. ET
Cablevision confirms $850 million investment in return for 40 pct stake
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NEW YORK (CNNfn) - Cablevision Systems Corp. said Monday it will join with Fox/Liberty Networks to create a national sports network reaching 55 million homes - and rivaling industry leader ESPN.
Fox/Liberty is a joint venture between Rupert Murdoch's News Corp. and Tele-Communications Inc.'s Liberty Media Group.
Under terms of the deal, Fox/Liberty will pay $850 million for a 40 percent stake in Cablevision's Rainbow Media group, which also owns and operates the Madison Square Garden properties.
Cablevision plans to use the proceeds to significantly reduce its debt-load, the companies said in a joint statement on Monday. Fox/Liberty will finance the transaction with bank loans.
Fox/Liberty will be responsible for management of the new national sports programming venture, which is to be operated under the "Fox Sports Net" brand name.
"This alliance represents a significant step forward in Cablevision's overall financial strategy of reducing leverage and focusing on our core businesses," said Cablevision Chief Executive James L. Dolan.
The new programming will also appear on Fox's nine regional sports channels as well as Cablevision's eight regional channels, most of which will be re-branded under the Fox name.
"This is a major step in providing a real national sports network," said News Corp. Chief Executive Rupert Mudoch.
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