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http://online.wsj.com/article/SB10001424052702304259304576373922003371428.html
Ultimate Fighting Championship, which pits boxers and martial-arts specialists against each other in bloody bouts, is in talks to acquire control of its own cable network, said people familiar with the matter, as it seeks a more direct relationship with the sport's growing fan base.
The sports organization, which popularized a new breed of fighting known as mixed martial arts, is in talks to buy control of NBCUniversal's struggling G4 gaming network, the people familiar with the matter said.
The value of the potential transaction and size of the majority stake couldn't be learned. For NBCU, the deal would be one of its first sales since Comcast Corp. took control of the company in January.
How close the companies are to a deal remains unclear. One person familiar with the matter described the talks as serious. Another such person said the talks are in the early stages and that the UFC is in discussions with multiple other networks and outlets.
NBCU is hoping a deal can help revitalize G4, whose already low viewership has been declining during prime time. The cable network features programming targeted at young men, with shows about videogames and gadgets. DirecTV last year stopped carrying the network, citing its low ratings.
Young males are coveted by TV advertisers because they are relatively hard to reach through other media.
For the UFC, its own network would allow it to more directly reach its fans, who are mostly male and between 18 and 34. Having control of their own networks opens new revenue streams for sports organizations, allowing them to collect monthly carriage fees from cable and satellite-TV companies and to build a new asset with equity value. In recent years, major sponsors like auto makers and fast-food chains like Burger King have become UFC sponsors.
UFC and its athletes—which are known for their athleticism and skills in various fighting techniques like boxing, karate and taekwondo— have become wildly popular via televised bouts on Viacom Inc.'s Spike TV, pay-per-view channels and the Web. Last year, the UFC also struck a deal to distribute some events on Comcast's sports network Versus.
UFC's deal with Spike expires at the end of the year, and UFC has been demanding a large increase in money to renew it, people familiar with the matter said.
UFC's Spike show "The Ultimate Fighter" has been struggling of late, drawing its second-smallest audience in the show's 13 seasons, according to Nielsen Co. Viewers have complained they are growing tired of the format and want to see more live shows.
UFC is owned by casino executives and brothers Lorenzo Fertitta and Frank Fertitta and Dana White.