Latest news with #SophieMoloney
Scoop
22-07-2025
- Business
- Scoop
Sky TV to buy Three owner Discovery NZ for $1
Sky TV has agreed to fully acquire TV3 owner Discovery New Zealand for $1. Discovery NZ is a part of US media giant Warner Bros. Discovery, and operates channel Three and online streaming platform ThreeNow. NZX-listed Sky said the deal would be completed on a cash-free, debt-free basis, with completion expected on 1 August. Sky expected the deal to deliver revenue diversification and uplift of around $95 million per year. Sky expected Discovery NZ's operations to deliver sustainable underlying earnings growth of at least $10m from the 2028 financial year. Sky chief executive Sophie Moloney said it was a compelling opportunity for the company, with net integration costs of about $6.5m. "This is a compelling opportunity for Sky that directly supports our ambition to be Aotearoa New Zealand's most engaging and essential media company," she said. Sky said it gave the Commerce Commission confidential advance notice of the transaction, and the commission did not intend to consider the acquisition further. Warner Bros. Discovery Australia and NZ managing director Michael Brooks said it was a "fantastic outcome" for both companies. "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," Brooks said. "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." Sky said on completion, Discovery NZ's balance sheet would be clear of some long-term obligations, including property leases and content commitments, and would include assets such as the ThreeNow platform. Sky said irrespective of the transaction, the company was confident of achieving its 30 cents per share dividend target for 2026. 'Massive change' for NZ media; ThreeNews to continue Founder of The Spinoff and media commentator Duncan Greive said the deal would give Sky more reach and was a "massive change" in New Zealand's media landscape. He noted Sky's existing free-to-air presence via Sky Open (formerly Prime), but said acquiring Three gave it the second-most popular audience outlet on TV. "Because of the inertia of how people use television, Three is just a much more accessible channel and one that's been around longer," Greive said. "To have basically the second-most popular channel in the country as part of their stable just means they've got a lot more ad inventory, much bigger audiences." It also gave Sky another outlet for their content, and would allow it to compete further against TVNZ, both linear and online, Greive said. He said there may be a question mark around the long-term future of Three's news service, which was produced by Stuff. Sky made no reference to ThreeNews in its announcement. However, Stuff confirmed ThreeNews would continue for now. "Stuff's delivery of ThreeNews is part of the deal but there are also now lots of new opportunities ahead that we are excited to explore together," Stuff owner Sinead Boucher said in a statement. On the deal itself, Boucher said she was "delighted" to see Three back in New Zealand ownership under Sky. "And who doesn't love a $1 deal!" Boucher said, referring to her own $1 deal to buy Stuff from Australia's Nine Entertainment in 2020.
1News
22-07-2025
- Business
- 1News
Sky TV agrees to buy Three for $1
Sky TV has agreed to buy Discovery NZ, which owns Three, for $1, the company announced this morning. The move was announced to the NZX, and would see US television giant Warner Bros Discovery leave New Zealand's free-to-air television market. Under the deal, Sky would take control of all TV3 brands, including Three, Bravo, Eden, Rush, HGTV, and the network's streaming platform, ThreeNow. The sale was made on a cash-free, debt-free basis and was expected to be completed on August 1. The deal also included a multi-year commercial agreement for the continued supply of Warner Bros Discovery's premium content to Sky. Warner Bros Discovery would retain ownership of its remaining assets in the New Zealand market, which included its pay TV channels, streaming service HBO Max, and Warner Bros. International Television Production (WBITVP) New Zealand. ADVERTISEMENT Sky had "no immediate plans" to change the content lineup on any of the Discovery NZ platforms related to the acquisition. 'This is an exciting, future-focused step for Sky and a win for our growth and ambition to be Aotearoa New Zealand's most engaging and essential media company," Sky chief executive Sophie Moloney said about the acquisition. "It positions us to scale faster, puts real momentum into our strategy, and grows and further diversifies our revenue streams, particularly in advertising and digital." Sky expected the sale to: Deliver Sky revenue diversification and uplift of c.$95m on an annualised basis, with 25%from digital sources Add to Sky's existing audience a growing digital audience via ThreeNow Grow Sky's combined total linear television advertising revenue share to 35% and total digital television advertising revenue share to 24% Deliver material cost synergies primarily across Sky's content and broadcasting infrastructure Deliver a pathway to achieve incremental, underlying free cash flow from FY26 and sustainable EBITDA growth of at least $10m from FY28. Moloney said Sky was "uniquely placed" to "take the business forward and give effect to the opportunity to accelerate our growth strategy". "We see strong value in ThreeNow's high-quality broadcast video on demand platform, and Three's mass reach, and we are looking forward to creating opportunities to do more with our content, for more New Zealanders, in more ways that work for them across a comprehensive portfolio of subscription and free-to-access platforms.' ADVERTISEMENT Summary: The morning's headlines in 90 seconds, including death of a The Cosby Show actor, vape product recalled, and how working less makes us feel better. (Source: Breakfast) Michael Brooks, managing director Australia and New Zealand for Warner Bros Discovery, said the move was a "fantastic outcome" for both companies. "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," he said. "While this business is not commercially viable as a standalone asset in the WBD New Zealand portfolio, we see the value Three and ThreeNow can bring to Sky's existing offering of complementary assets."
Otago Daily Times
21-07-2025
- Business
- Otago Daily Times
Sky TV to buy Three owner Discovery NZ
Photo: ODT files Sky TV has agreed to fully acquire TV3 owner Discovery New Zealand for $1. Discovery NZ is a part of United States media giant Warner Bros. Discovery. NZX-listed Sky said the deal would be completed on a cash-free, debt-free basis, with completion expected on August 1. Sky expected the deal to deliver revenue diversification and uplift of about $95 million per year. It expected Discovery NZ's operations to deliver sustainable underlying earnings growth of at least $10m from the 2028 financial year. Sky chief executive Sophie Moloney said it was a compelling opportunity for the company, with net integration costs of about $6.5m. "[It] directly supports our ambition to be Aotearoa New Zealand's most engaging and essential media company." Sky said it gave the Commerce Commission confidential advance notice of the transaction and the watchdog did not intend to consider the acquisition further. Warner Bros. Discovery Australia and NZ managing director Michael Brooks said it was a "fantastic outcome" for both companies. "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." Sky said on completion, Discovery NZ's balance sheet would be clear of some long-term obligations, including property leases and content commitments, and would include assets such as the on demand ThreeNow platform. Sky said irrespective of the transaction, the company was confident of achieving its 30 cents per share dividend target for 2026.
Otago Daily Times
21-07-2025
- Business
- Otago Daily Times
Sky TV to buy Three owner for $1
Photo: ODT files Sky TV has agreed to fully acquire TV3 owner Discovery New Zealand for $1. Discovery NZ is a part of United States media giant Warner Bros. Discovery. NZX-listed Sky said the deal would be completed on a cash-free, debt-free basis, with completion expected on August 1. Sky expected the deal to deliver revenue diversification and uplift of about $95 million per year. It expected Discovery NZ's operations to deliver sustainable underlying earnings growth of at least $10m from the 2028 financial year. Sky chief executive Sophie Moloney said it was a compelling opportunity for the company, with net integration costs of about $6.5m. "[It] directly supports our ambition to be Aotearoa New Zealand's most engaging and essential media company." Sky said it gave the Commerce Commission confidential advance notice of the transaction and the watchdog did not intend to consider the acquisition further. Warner Bros. Discovery Australia and NZ managing director Michael Brooks said it was a "fantastic outcome" for both companies. "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." Sky said on completion, Discovery NZ's balance sheet would be clear of some long-term obligations, including property leases and content commitments, and would include assets such as the on demand ThreeNow platform. Sky said irrespective of the transaction, the company was confident of achieving its 30 cents per share dividend target for 2026.
