Goldman Sachs and several other investors in the YES Network are eyeing a sale of a majority stake in the Yankees television network – which could sell for close to three times its value when it was founded nearly five years ago, The Post has learned.
About two months ago Goldman Sachs and Providence Equity Partners, another of the original private investors in the network, gained the right to sell their stakes without needing the approval of the Yankees, according to several sources close to the matter.
While no formal process is underway, several potential suitors have been “sniffing around” the network, according to a source. These include cable operator Comcast, Verizon, which wants to become a major player in pay TV, and Walt Disney’s ESPN, a source said.
However, the investors are likely to wait on a sale until early next year, when News Corp. would be able to bid, according to a source close to the network.
In February 2005 News Corp., which owns The Post, and Cablevision unwound their partnership in Madison Square Garden and several regional sports networks, including Fox Sports New York.
As part of the deal, in which Cablevision gained complete ownership of MSG and FSNY, News Corp. agreed it wouldn’t compete in New York in regional sports broadcasting for two years.
Goldman, Providence and a group led by Ray Chambers, the former owner of the New Jersey Nets who was once part of the YankeeNets holding company, are likely to sell, sources said.
The YankeeNets was formed in 1999 by Chambers and Yankees owner George Steinbrenner, but the big egos eventually clashed and the partnership was dissolved in 2003.
The Yankees are not likely to sell, a source said, and instead would partner with a new owner.
Representatives for the Yankees and the YES Network declined comment.
“The reality, from a viewer’s standpoint, is there will be no change,” said a source close to the matter.
But the reality from the investors’ standpoint is that they expect to cash in big time. The YES network has ballooned in value since it was founded in 2001 with an initial capitalization of roughly $850 million.
The most optimistic among those close to the network say it could be worth close to $3 billion today.
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Big Bat
The sale of a majority stake in the YES network could be a windfall for Goldman Sachs and other investors.
Interested Suitors:
* Verizon
* Comcast
* ESPN
* News Corp.
Ownership breakdown:
Goldman, Providence: 40%
Yankees: 30%
Ray Chambers Group: 30%