Friday, 10 June 2011

Report: Purchase of G4 network could cost UFC $600 million

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According to a report from Bloomberg.com that cites multiple analysts with knowledge of the situation, the potential sale of the G4 network, a cable video game channel, could cost the UFC up to $600 million.
That's because the channel reaches 60 million homes in the United States, and will likely demand $5 to $10 per home in the sale, if it is to occur.
Wall Street Journal originally scooped the news of the potential sale and The New York Times confirmed that the two parties met in New York City as recently as yesterday.
The reason UFC seems to be shopping for a new home on cable TV is due to a recent breakdown in negotiations with Spike TV, the original home for the organizations extensive programming.
It was initially reported that UFC was asking for $325 million a year to remain with Spike; however, that number was apparently inflated and actually represents the amount for the life of the deal.
Still, it appears as though Spike is preparing to part ways with UFC once the contract expires and move directly into a new relationship with Bellator Fighting Championships.
Company President Dana White today stated at the UFC 131 pre-fight press conference that no deal is close to done just yet and they are in continued talks with "everybody."

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