ESPN to sell stake in Star Sports to News Corp

Monday, 11 June 2012 00:00 - - {{hitsCtrl.values.hits}}

ESPN and News Corp have announced a definitive agreement under which ESPN will sell its 50 per cent stake in ESPN Star Sports (ESS) to a unit of News Corp, ending a 16-year partnership.

The transaction gives News Corp full ownership while “providing ESPN more independence and flexibility in future support of The Walt Disney Company’s overall efforts in Asia,” according to a statement. The companies also announced that Peter Hutton, currently senior vice-president of Sports for Fox International Channels (FIC), will take over as ESS managing director from Manu Sawhney, who held the post since 2007. Hutton will report to the ESS Board. Sawhney will be staying with the Company until 31 August to work with Hutton on a smooth transition.

News Corp cited ongoing simplification of its operating model and affiliate ownership structures as reasons for the buyout. Meanwhile, John Skipper, president of ESPN and co-chairman of Disney Media Networks said, “After 16 years jointly managing ESS, we have decided to independently pursue future opportunities in Asia...and with the growing digital landscape in Asia, we look forward to continuing to serve Asian sports fans through ESPN-branded digital businesses like ESPNCricinfo, the leading digital cricket brand in the world, ESPNFC and ESPN Mobile.” Hutton joined Fox International Channels Sports in 2011 after 20 years in the international sports television business, including Broad Reach Media, Ten Sports in Dubai and TWI, the television division of IMG, running their Indian business as well as television production for Asia.