Fox exits bidding for YES and other local sports networks

Fox rocked the sports world Friday by removing itself from the auction o𓆏f Disney’s 22 regional sports TV networks, including ♍the group’s “crown jewel” YES Network.

The sale of the RSNs — a regulatory condition of Disney’s $71 billion deal to take over Fox’s entertainment assets — was slated ༒to enter its second round by the end of this month and conclude in February.

Observers thought Fox would surely backstop the auction, if only by lobbying an 11th-hour bid should final offers fall embarrassingly short of the $20 billio🦩n Disney hopes to receive from a sale.

But in a regulatory fꦆiling, Fox said “it does not intend to bꦡid for any of the [RSNs].”

“It’s really p🔴erplexing,” said a source following the auction managed by Allen & Co. and JPMorgan.

“This could reduce the price to a five-handle,” another source added, referring to an
Ebitda multiple between five and six. Based on the RSNs’ 2017 Ebitda of $1.85 billion, that would put the price between $9.25 billion and 🍃$11.1 billion — about half of Disney’s target.

Fox said its surprising statement was timed to help credit-rating agencies assess its ab🧸ility to take on debt to fund an $8.5 billion dividend to Disney.

Fox’s exit leaves Sinclair Broadcasting the only stᩚᩚᩚᩚᩚᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ𒀱ᩚᩚᩚrategic p💮layer interested in buying the RSNs in one fell swoop, even though sources said it submitted a low-ball offer.

“There’s a price to everything,” BTIG analyst Brandon Ross told The Post. “And if it gets low enough, you’ll likely see private equity firms 𓂃step up and take the risk of RSN ownership.”

As part of the asset sale, Fox agreed on the dividend payment to cover ta🐷x liabilities a𝐆ssociated with Disney’s completing the transaction.

But people close to the process said the statement’s overriding purpose is to establish “New Fo🌜x” as a grow🐼th company.

Buying the RSNs, which would have the same effect as keeping them, “would make New Fox look too꧅ much like the old Fox,” said one source, who called Fox CFO John Nallen the driver of the decisi🥀on to exit RSNs.

FBN analyst Robert Routh agreed, noting that RSNs have been losing subscribers in recent years — a trend he attributed to cord-cutting and a new generation that’s “more ♏interested in playing video games and watching YouTube than following s♓ports.”