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Sky TV has announced its acquisition of Warner Bros. Discovery’s (WBD) New Zealand free-to-air television business for NZ$1. This strategic move is set to significantly expand Sky TV’s presence within the New Zealand media landscape.

Acquisition Details

The transaction includes all of Warner Bros. Discovery’s New Zealand free-to-air television channels: Three (formerly TV3), Eden, Rush, Bravo, and HGTV. Additionally, the deal encompasses the BVOD streaming and catch-up platform ThreeNow, which WBD had acquired in late 2020. The acquisition was conducted on a cash-free, debt-free basis and includes a multi-year commercial agreement for WBD to continue supplying content to the acquired channels.

Strategic Rationale: Sky

Sky TV CEO Sophie Moloney stated that the acquisition underscores the company’s commitment to the future of free-to-air broadcasting and its objective to offer a comprehensive range of content across various platforms. Moloney described the deal as a natural extension of Sky’s existing operations, aiming to foster a more efficient, effective, and sustainable local media sector.

Strategic Rationale: Warner Bros. Discovery

For Warner Bros. Discovery, the divestiture marks the conclusion of its direct broadcast operations in New Zealand. Michael Brooks, Warner Bros. Discovery ANZ General Manager, indicated that this decision aligns with the company’s evolving global strategy. The sale follows a comprehensive review of options aimed at ensuring the long-term success of WBD’s New Zealand operations. This transaction is part of WBD’s broader global restructuring efforts, which have seen the company exit several linear markets in Europe and streamline its operations to focus on streaming and key international markets.

Future Outlook

The acquisition includes the transfer of existing Warner Bros. Discovery employees in New Zealand to Sky TV. Sky has affirmed its commitment to maintaining local operations, anticipating that the combined entity will deliver enhanced outcomes for both audiences and advertisers. Warner Bros. Discovery will retain a presence in New Zealand through its production business, WBITVP, its suite of pay TV channels, and a content licensing agreement with Sky’s streaming platform Neon. The transaction is expected to finalize by August 1.

About Sky TV

Sky TV is a publicly listed New Zealand company operating a comprehensive pay-television service, alongside subscription streaming services Sky Go and Neon, and the free-to-air channel Sky Open. The company is a key provider of entertainment and sports content in New Zealand.

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