Best Deal: Kroenke Acquires Outdoor Channel
Stan Kroenke, the sports entrepreneur who owns teams in multiple leagues, will add the Outdoor Channel to his portfolio. Kroenke Sports & Entertainment has a deal to
acquire the network’s parent for $8.75 a share, beating out an earlier agreement with InterMedia Partners, which would have merged the Outdoor Channel with the Sportsman Channel.
The $8.75 a share is a 15.9% increase over Outdoor Channel Holdings’ share price on March 1. InterMedia, which owns the Sportsman Channel and outdoor enthusiast magazines, had a deal last year to buy the competing company, where stockholders could select $8 a share, a share in a new merged business or some combination.
InterMedia has received a $6.5 million break-up fee after its deal fell apart. InterMedia had a four-day window to alter its bid to better appeal to Outdoor Channel shareholders, but the company deemed the Kroenke deal superior.
The Kroenke deal is expected to be completed in the next few months. Stan Kroenke already holds a significant share in Outdoor Channel Holdings, which also owns a business supplying aerial cameras used for sports broadcasts. Kroenke Sports controls 50% of the World Fishing Network.
Kroenke Sports controls the Denver Nuggets, Colorado Avalanche and a regional sports network. Stan Kroenke also owns the St. Louis Rams and Arsenal soccer team in Britain.