Potential suitors are not tuning in to James Dolan’s MSG Networks — and it appears there is no buyer now for the regional sports network, sources tell The Post.
“Nothing is happening,” a source close to the situation said, adding that Dolan still wants to sell the business.
Turning off potential buyers is the fact that the RSN, with a market cap of $1.7 billion and trading at 10 times Ebitda, is not worth the price, a source said.
MSGN’s shares have risen 42 percent in the past 12 months and closed Monday at $23.05, up 7 cents.
Part of the rise is attributable to sale speculation.
“Fox Sports Networks doesn’t want it,” a second source said, referring to one of the most logical buyers.
In New York, Fox already owns the YES Network and combining it with MSG Networks would give it a dominant Big Apple presence.
There has been speculation that Dolan’s master plan was to sell the RSN and use the proceeds to buy more or all of separately listed Madison Square Garden, the arena that owns the Knicks, Rangers and the Liberty.
Those plans may need to be readjusted.
Earlier this year, Dolan started looking to sell MSG Networks, which owns the TV rights for the Knicks, Rangers, Devils, Islanders and other sports teams, The Post reported exclusively on April 3.
MSGN is the only stand-alone, publicly traded RSN.
JPMorgan, which has a neutral rating on the stock, said in its most recent report it was concerned by “ongoing subscriber declines (driven by lower-priced cable packages and outright cord-cutting) and increasing costs for content.”
“We also believe the company faces a longer-term challenge in its next cycle of renewals as distributors will likely seek to lower the minimum carriage levels they provide to MSGN’s channels,” JPM said.
Advertising revenue, too, is highly dependent on ratings, and MSGN’s main attraction, the Knicks, have been a losing team, JPM said.
In October 2015, The Garden spun off its media assets, creating two different companies.
If there is no buyer, there is a possibility Dolan will consider putting MSG (the sports teams) and MSGN back together again, an MSGN analyst requesting anonymity said.
MSGN has said it is committed to being an independent company, and declined comment for this story. Fox declined comment.