Discovery NZ Limited was owned by Discovery Networks Asia-Pacific Pte Ltd, a subsidiary of Warner Bros. Discovery, Inc.
Under the Discovery banner sat free-to-air broadcaster Three, its broadcast-video-on-demand service ThreeNow as well as “a range of other linear and free ad-supported streaming television (FAST) channels in New Zealand,” according to a statement.
ThreeNow is the exclusive broadcaster of NASCAR in New Zealand.
What the ownership change means for NASCAR fans across the ditch remains unclear.
Before ThreeNow obtained the rights to NASCAR, it spent more than a decade on Sky New Zealand’s sport subscription service Sky Sport.
Three is the home of CRC Motorsport, the country’s longest-running weekly racing recap program.
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The acquisition is tipped to deliver Sky revenue diversification and uplift of circa 95 million NZD on an annualised basis, with 25 percent from digital sources.
“This is a compelling opportunity for Sky that directly supports our ambition to be Aotearoa New Zealand’s most engaging and essential media company,” said Sky chief executive Sophie Moloney.
“It positions us to scale faster, accelerates our growth, and further diversifies our revenue streams, particularly in advertising and digital.
“We are acquiring a business with complementary operations that is a strong strategic fit for Sky, in an accretive way for our shareholders.”
Moloney touted the acquisition of a broadcast-video-on-demand service (BVOD) as a major selling point.
“In particular, acquiring the established and fast-growing ThreeNow BVOD platform adds an important missing component to Sky’s portfolio, without incurring the significant brand and platform development costs and inherent revenue risks associated with building a BVOD service ourselves,” she explained.
“The combined portfolio will give Sky significantly increased scale, diversity and mass reach that will unlock more opportunities in advertising and maximise the return on our investments in content through a strengthened, multi-platform approach.”
Warners Bros. Discovery New Zealand has battled to survive after it bought television arm of MediaWorks.
The business went through massive staff upheaval in 2024 and shut down its news service Newshub. Three’s 6pm bulletin survived thanks to a deal with Stuff, establishing ThreeNews.
“Notwithstanding the ongoing challenges faced by the Discovery NZ business, Sky is uniquely placed to give effect to this opportunity to accelerate our growth strategy,” said Maloney.
Michael Brooks, Warner Bros. Discovery managing director for Australia and New Zealand, acknowledged the recent struggles but said the business could thrive under Sky.
“This is a fantastic outcome for both WBD and Sky,” said Brooks.
“The continued challenges faced by the New Zealand media industry are well documented, and over the past 12 months, the Discovery NZ team has worked to deliver a new, more sustainable business model following a significant restructure in 2024.
“While this business is not commercially viable as a standalone asset in WBD’s New Zealand portfolio, we see the value Three and ThreeNow can bring to Sky’s existing offering of complementary assets.
“The transaction includes a significant and ongoing content supply agreement for WBD’s premium content, for the mutual benefit of both parties.”
According to a statement on the NZX: “On completion, Discovery NZ’s balance sheet will be clear of certain long-term obligations, including property leases and content commitments, and will include assets such as the ThreeNow platform, a portfolio of content rights acquired in the normal course of business and clear of content payables, and a normal level of other net working capital (subject to a customary post completion adjustment process).”
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