Benchmark Capital, the venture capital firm linked with businessman Barry Maloney, has acquired a 50 per cent stake in the North American sports channel partly owned by Setanta Sports.
The deal is due to be announced today and Benchmark is believed to have paid around €20 million for the stake.
The channel, North American Sports Network (NASN), was set up in December 2002 with backing from Microsoft co-founder Paul Allen's venture capital group Vulcan Media Holdings and Setanta.
Mr Allen's group is now selling its 70 per cent stake.
Under the terms of the deal which was agreed in recent weeks, Setanta is to increase its stake and Benchmark Capital Europe is buying into the firm for the first time.
Both groups will now hold 50 per cent stakes.
Mr Allen's group invested a reported €10 million to acquire its stake originally.
The value of the stake has increased in the last three years as NASN has been rolled out throughout Europe.
The station offers a range of American sport aimed at US and Canadian ex-pats living in Europe, but increasingly it has also attracted an audience from general sports fans. The channel is available in Ireland, for an additional fee, with NTL and Sky digital.
The original deal between Mr Allen and Setanta occurred after one of Setanta's employees approached Mr Allen through a family friend.
It is believed Mr Allen was very taken with the idea of a channel aimed at US and Canadian ex-pats. Mr Allen is believed to be one of the wealthiest people in the world and his Vulcan venture capital firms have invested in a range of high-tech and media businesses.
NASN broadcasts a wide range of North American sports including major league baseball, basketball, ice hockey, American football and NASCAR racing, along with coverage of leading college sports.
In addition, the channel broadcasts Canadian and American sports talk shows and news programmes.
The station is available in many European countries including Germany, the UK, the Netherlands, Switzerland and Iceland. It is also available in US air force bases in Germany.
The company has plans to roll out the service in Asia in the near future.
Mr Maloney, who developed the Esat brand in Ireland, is a director of Benchmark Capital Europe. It has invested in recent years in companies like Alphyra, Betfair, eBay and Codemasters, a computer games company. Its European fund has access to $375 million.
Benchmark Capital Europe is investing in the company on the basis of its growth plans in the future, particularly in new markets like Asia.
MGM, the major Hollywood studio, is to offer its classic movie channel via the Chorus digital platform in the Republic. The channel is already available on the NTL digital platform.
