Financial transaction (updated)

Blogged a while back that DirecTV had sold a 5% stake in GSN to somebody. Turns out that somebody was co-owner Sony, which now owns 40% of our little game show network.

Of course, Sony once owned the whole thing. In fact, Sony launched GSN in 1994 as an outlet for its large library of game shows. After gushing red ink for years GSN almost died in 2000-01. Then Liberty Media (DirecTV's corporate relative - it's complicated) took a 50% stake and brought in a no-nonsense exec named Rich Cronin to clean up the mess.

Cronin got the network into the black before leaving in 2007, succeeded by current boss David Goldhill. Since then Goldhill has launched a major foray into online gaming, which has boosted GSN's value. The general recovery in the ad market hasn't hurt, either. After selling 15% more of GSN to Liberty/DirecTV a couple years ago, Sony must now want some of that online action. So they bought back the 5% stake this year.

Sony's overall results aren't terrific, but it has benefited from GSN's rise in value. Despite the hiccup with Improv-a-Ganza and Love Triangle, GSN should do okay. The cable network still has a pleasant niche of its own, and the online business is prospering.