Industry shock as free-to-air network is sold for just $1
The announcement was made to the New Zealand stock exchange on Tuesday.
Sky TV, which operates a pay-to-view service similar to Foxtel in New Zealand, will acquire all of WBD's television channels, including Three (formerly TV3), Bravo, Eden, Rush, HGTV, and BVOD catch-up service ThreeNow.
Sky announced it had 'agreed to acquire 100% of the shares in Discovery NZ Limited from Discovery Networks Asia-Pacific Pte Ltd (a subsidiary of Warner Bros Discovery, Inc)' for $1 on a cash-free, debt-free basis.
The shocking news comes five years after Discovery purchased Three from MediaWorks in 2020 for a rumoured US$20million.
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Discovery said the completion of the sale is expected to take place on August 1.
This deal will profoundly reshape the commercial TV and streaming landscape in New Zealand, as it forges the biggest media company in the country by revenue and audience — all for the price of a singular gold coin.
In April last year, WBD confirmed the closure of its New Zealand newsroom Newshub, ending the 6pm and AM TV news bulletins on channel Three.
Sky will assume all of WBD's ongoing commercial contracts, including a partnership deal with Stuff (stuff.co.nz) that was struck with WBD days after Newshub closed last year.
The digital publisher has been providing ThreeNews since June 6, 2024.
Effectively, the 6pm news moved online – with Stuff hiring several beloved Newshub presenters who had been made redundant.
Sinead Boucher, who purchased the Stuff company from Australia's Nine Entertainment for $1 in 2020, said she is 'delighted' to see Sky bring TV3 back into New Zealand ownership 'for the first time in decades'.
'My word this industry moves at pace!' ThreeNews presenter Samantha Hayes posted to Instagram on Tuesday.
'I was only just getting around to marking our one year anniversary of ThreeNews this month and now another seismic shift in the media landscape with Sky buying Three, ThreeNow and Discovery NZ's many other assets.
'We'll keep making our 6pm news bulletin like we always do and I'm excited about what the future holds... watch this space!'
Sky's chief executive Sophie Moloney told Stuff the deal made sense, both strategically and financially for the pay TV giant.
'We've made no secret of the fact we want to grow our advertising revenue and the one platform we're actually missing in that ecosystem was a BVOD [broadcast video on demand] platform,' she said.
'Ultimately, we think this shores up the local media ecosystem which we're thrilled to participate in.'
Warner Bros. Discovery will remain in New Zealand through its 'highly successful' film production business WBITVP, suite of pay TV channels, and a content licensing deal with Sky's streaming platform, Neon.
Kiwi media pundits are saying the $1 price tag indicates that Discovery NZ's parent, WBD, simply wanted to exit the free-to-air business.
'Our decision to sell the business follows an extensive review of options to ensure long-term success for our New Zealand operations,' Australia and NZ managing director Michael Brooks said.
'Advertiser behaviour has shifted, viewer habits have shifted, and we're still going through this digital transition,' he told Stuff.
'The media industry has changed right across the board. I don't think there's a market or a company that hasn't been impacted over the last few years.'
The sale is the latest move in WBD's global restructuring efforts, as the media Goliath splits its businesses up.
One arm of the company will focus on streaming, and the other on global networks - many of which were downsized, or shut down, across Europe in 2023.
Brooks said the New Zealand sale has 'absolutely no connection' to the global restructuring efforts.
Meanwhile, NZ Prime Minister Christopher Luxon was unbothered about the deal.
'Yeah, I saw those reports,' Luxon said in parliament.
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