Analysts: Sale price for G4 to UFC may be $600 Million
NBC Universal’s G4 channel may fetch as much as $600 million in a sale to Ultimate Fighting Championship, according to…
NBC Universal’s G4 channel may fetch as much as $600 million in a sale to Ultimate Fighting Championship, according to analysts including David Joyce of Miller Tabak & Co.
NBC Universal is in talks to sell the video-game channel G4 to the UFC, according to two people with knowledge of the situation. G4 reaches 60 million U.S. homes, and may command $5 to $10 per home in a sale, Joyce said. Joyce said more broadly distributed cable channels with bigger advertising revenue can fetch as much as $20 per subscriber. David Bank, an analyst with RBC Capital Markets, gave the same estimate of $5 to $10 per home.
Negotiations are early and a deal may not be reached, accoridng to two people with knowledge of the situation, who aren’t authorized to speak publicly.
The discussions were reported yesterday by the the Wall Street Journal. UFC may seek only to buy control of the network, the newspaper said, citing unidentified sources.
When asked about the deal at today’s UFC 131 press conference, Dana White noted that no deal was done, and that the UFC was still talking to “everybody.”