Jan. 17 (UPI) -- Amazon agreed to buy a minority stake in Diamond Sports Group, the largest owner of regional sports networks, which filed for bankruptcy in March, the companies announced Wednesday.
Amazon will enter into a commercial arrangement and agreed to a $115 million investment, while providing access to Diamond's services on Amazon Prime Video. Diamond owns 18 Bally Sports regional sports networks, which have rights to 37 teams across the NBA, MLB and NHL.
Diamond said its restructuring support agreement with its largest creditor groups will enable it to emerge from bankruptcy.
The company also entered into an agreement with its parent, Sinclair, to settle pending litigation between those companies and other defendants. Sinclair will pay Diamond $495 million in cash and provide management and support to its subsidiary, from which it will separate.
"We are thrilled to have reached a comprehensive restructuring agreement that provides a detailed framework for a reorganization plan and substantial new financing that will enable Diamond to operate and thrive beyond 2024," Diamond CEO David Preschlack said in a news release.
"We are grateful for the support from Amazon and a group of our largest creditors who clearly believe in the value-creating potential of this business."
Amazon had no comment, when asked about the purchase and commercial arrangement.
Diamond filed for Chapter 11 bankruptcy March 14 after it missed a $140 million interest payment. The company said in 2021 that it had a debt of $8.6 billion.
MLB took control of production and distribution for the San Diego Padres and Arizona Diamondbacks.
Availability and pricing for the content on Amazon Prime will be announced later.