In a major shake-up of New Zealand’s media landscape, Sky TV has announced it will acquire Warner Bros. Discovery’s (WBD) New Zealand free-to-air television business for just NZ$1.
Sky TV New Zealand is a publicly listed company that operates a pay TV service comparable to Australia’s Foxtel, alongside the subscription streaming service Sky Go, entertainment streamer Neon, and free-to-air channel Sky Open.
Announced to New Zealand’s stock exchange this morning, the deal includes all of Warner Bros. Discovery’s television channels — Three (formerly TV3), Eden, Rush, Bravo, and HGTV — along with the BVOD streaming and catch-up platform ThreeNow, which the company acquired from MediaWorks in late 2020.
Once completed, the deal will mark the end of Warner Bros. Discovery’s direct broadcast operations in New Zealand, following a challenging period marked by significant financial losses, the closure of its long-running news division Newshub, and a broader restructure that included outsourcing local news production to digital publisher Stuff.
The deal, made on a cash-free, debt-free basis, includes a multi-year commercial agreement for Warner Bros. Discovery to continue supplying content to the channels under Sky’s new ownership, according to the NZ Herald.
“This acquisition reflects our strong belief in the future of free-to-air and our commitment to offering viewers a compelling range of content across platforms,” said Sky CEO Sophie Moloney.
“It’s a natural extension of our existing business and an opportunity to create a more efficient, effective and sustainable local media sector.”
The acquisition includes existing Warner Bros. Discovery employees in New Zealand, who will transfer to Sky as part of the agreement, though it is not yet clear whether any job losses will occur. Sky has committed to continuing local operations and says the combined business will help deliver better outcomes for audiences and advertisers.
Warner Bros. Discovery will maintain a presence in New Zealand through its production business WBITVP, its suite of pay TV channels, and a content licensing deal with Sky’s streaming platform Neon, which hosts the “Max” hub featuring HBO originals and other premium titles.
Warner Bros. Discovery ANZ General Manager Michael Brooks said the move aligns with the company’s evolving global strategy.
“Our decision to sell the business follows an extensive review of options to ensure long-term success for our New Zealand operations,” Brooks said.
“We are confident Sky is best placed to take the business forward and build on the legacy of our brands in this market.”
The sale is the latest move in Warner Bros. Discovery’s global restructuring efforts. In 2023, the company exited several linear markets in Europe, including the closure of channels in the Netherlands and a broader downsizing in the Nordics and Central and Eastern Europe, as it refocused investment on streaming and key international markets.
It also follows the company’s recent announcement to separate its streaming and studio assets from its global networks division, underscoring a strategic shift to streamline operations and sharpen focus across distinct areas of the business.
Take a listen to Sky’s Sophie Moloney and Warner Bros. Michael Brooks about the deal here:
Sky TV expects the transaction to close by August 1.
Watner dosnt own Bravo
For a dollar, I’m surprised the Australian networks didn’t have a look, or was 91c AUD too expensive for them.
I share your surprise that the Australian networks didn’t take a look at acquiring Three and Three Now. The price tag should have been irresitable.