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Tennis Channel, anyone?
The niche cable network could be on the block by the end of the year if regulators agree to hand it another 20 million households, sources close to the matter tell The Post.
A positive decision in the matter, pending before the Federal Communications Commission, would lift the Tennis Channel’s distribution from 34 million homes to more than 50 million — boosting its value and tilting its owners’ minds toward a sale, these sources said.
With an expanded distribution platform, the value of the Tennis Channel could leap from its current $300 million-to-$400 million up to roughly $1 billion, sources added.
Bankers are eyeing the independent network ahead of a likely distribution expansion.
In December 2011, an administrative law judge ruled that Comcast — whose Golf Channel is on digital basic — had to put Tennis Channel on its digital basic tier, too. It is now on Comcast’s digital sports tier, which is only in 2 million to 3 million homes.
The FCC has requested a stay of the decision, in order to make sure the law will hold up under greater scrutiny. It might also alter the decision. Comcast is challenging the decision.
An FCC judgment in Tennis Channel’s favor is “likely,” a source familiar with the regulator’s rulemaking process said, adding that the FCC may decide the issue as early as next month.
The independent network was created in May 2003, and is part-owned by an investor group that includes Apollo Partners, Bain Capital, Battery Ventures, CCMP Capital Advisors and Columbia Capital.
The USTA also has a stake along with individual investors such as Viacom’s CEO Philippe Dauman and Deputy Chairman Tom Dooley.
Other investors include: Frank Biondi, of Waterview Advisors, and Andre Agassi and Pete Sampras.
Tennis Channel’s annual revenue is around $100 million and it is close to being profitable, insiders said.
The network has long-term deals to carry live coverage of the Australian, French and the US Opens. It doesn’t show live Wimbledon coverage (ESPN has those rights) but has exclusive rights to show Wimbledon coverage in the US primetime window.
Tennis also produces coverage for other networks, including ESPN.
Battery Ventures partner Scott Tobin told The Post, “We’re having a lot of fun with Tennis Channel. The company is making unbelievable strides.”
Tobin said that additional distribution would directly affect its value but declined to put a figure on it.
While Tobin insisted the company is not for sale, he admitted, “It would be disingenuous to say that at one point we won’t monetize it.”
Its owners shopped the channel two to three years ago, but found no takers, in part because of its small distribution, sources said.
A spokesman for the network declined comment on a potential sale, referring calls to the network’s investors.