Business
Sean Combs (Diddy) makes $200 million bid for FUSE TV
Sean Combs, the hip-hop mogul now known as Diddy, has bid about US$200 million for the FUSE cable-TV channel, said 3 people with knowledge of the situation.
Combs, 43, rose to fame as rapper Puff Daddy and has since founded fashion, liquor and media businesses, including the cable-music channel Revolt TV. He would convert FUSE – owned by New York-based Madison Square Garden Co., into Revolt TV, which has backing from Comcast Corporation, said the people, who requested anonymity because the talks are private. Combs is one of several Fuse bidders, one of the people said.
With the purchase, Revolt TV would gain wider distribution and higher subscriber fees, one person said. Fuse is available in about 74 million homes through pay-TV systems including DirecTV, Dish Network Corporation and Cablevision Systems Corporation, compared with Revolt TV, which reaches about 22.8 million homes and is carried by Comcast and Time Warner Cable Inc., according to researcher SNL Kagan.
“As we have stated, we are exploring strategic alternatives for FUSE, and will have no further comment during what is still an ongoing process,” Kimberly Kerns, a spokeswoman for Madison Square Garden, said yesterday in an e-mail.
Keesha Johnson, a press contact for Combs, declined to comment.
Michael Senno, an analyst at Credit Suisse, estimated in a September 12 report that FUSE would receive bids between US$200 million and US$250 million.
“An offer of US$200 million seems low for almost 75 million households,” said Paul Sweeney, an analyst with Bloomberg Industries.
The Dolan family, which spun Madison Square Garden off from Cablevision 4 years ago, has been asking for about US$400 million for FUSE, according to one of the people. Al Jazeera acquired Current TV for about US$500 million last year. Current reached about 60 million U.S. homes. FUSE’s distribution on Comcast and Time Warner Cable would be less valuable to Diddy because they already carry Revolt TV.
Revolt made its debut on Comcast last year and airs music videos, live performances, news and interviews.
FUSE airs original programming including “Billy on the Street,” which stars comedian Billy Eichner accosting New Yorkers on public sidewalks with celebrity trivia questions, and “Big Freedia: Queen of Bounce,” a reality series featuring New Orleans musician Big Freedia.
Source: Bloomberg