Confidential sources have revealed to Bloomerg.com that hip hop mogul Sean “Diddy” Combs has put in a bid of $200 million to buy the music network, Fuse. According to reports, the 43-year-old head of Bad Boy World Wide Entertainment Group is hoping to acquire Fuse in order to absorb it into his own music television venture, Revolt TV. Revolt began broadcasting in October of 2013 in partnership with Comcast shortly after the communications giant acquired NBC Universal.
If this does happens it would be an opportunistic move for Revolt. As of now, the Bad Boy/NBC Universal music network is in 22 million homes via its distribution through the Comcast and Time Warner cable companies. Fuse on the other hand is currently in about 74 million homes. Therefore, simple addition says that Combs purchasing Fuse would increase Revolt’s viewership totals, and give the new network a crucial boost in overall value, bettering its ability to content with established competitors.
While $200 million is a lot of money to even the wealthiest of us, it’s a low bid when trying to buy an entire TV network. For example, when Al Gore sold his Current TV network last year, Al Jazeera paid a hefty $500 million to acquire it, and Current was only in 60 million US homes at the time. The Madison Square Garden Company, who currently owns Fuse does seem like they’d be willing to consider the right offer though. Apparently, MSG enlisted the help of JP Morgan Chase to put Fuse on the market. Their asking price is $400 million. Fuse’s US house hold market penetration is larger than Current’s was, and they are asking for 100 million less. Is this a sign that the company is on shaky ground, and they are simply being “Bluff Daddy” to Puff Daddy?
When asked for comment, Kimberly Kerns, a spokeswoman for MSG, replied to Bloomberg with the following email statement:
“As we have stated, we are exploring strategic alternatives for Fuse, and will have no further comment during what is still an ongoing process.”