Broadcasting company Sinclair is potentially looking for an investor to partner up on to help run its Tennis Channel, according to Front Office Sports.
Sinclair, which also owns or operates nearly 300 television stations across the U.S., hired investment bankers to advise it on a potential deal, the report said. While the term “explore strategic alternatives” typically suggests putting up an asset for sale, that isn’t the case in this situation. The company isn’t motivated by a desire to sell the business — but rather because it has received so many inbound inquires about the asset, Front Office Sports said.
A spokesman for Sinclair couldn’t immediately be reached for comment.
The Tennis Channel has been a bright spot in the company. In the third quarter, the company reported that its Tennis division, which includes the Tennis Channel, posted $59 million in revenue, up 9% from a year earlier. It also reported adjusted earnings before interest, taxes, depreciation and amortization of $18 million, up 6% from a year ago.
Beyond the Tennis Channel cable network, the company has been increasingly expanding into streaming with its Tennis Channel Plus service and T2 FAST, a free, ad-supported streaming channel, and Tennis.com. It also partnered with the Carvana Professional Pickleball Association to create a separate Pickleballtv streaming channel that capitalizes on the growing popularity of that sport.
Sinclair purchased the Tennis Channel in 2016 for $350 million.
The report noted that this move is unrelated to the troubles with subsidiary Diamond Sports Group, which runs Bally Sports and is attempting to claw itself out of bankruptcy with the help of Amazon.