Warner Bros. Discovery Sells New Zealand Channels to Sky for $0.60

Warner Bros. Discovery (WBD) sold its local channels operations in New Zealand to Sky New Zealand for $0.60. Sky will gain 100% of Discovery NZ's outstanding shares, 35% of linear TV ad market revenue share, and 24% of digital TV share. Warner will supply content for several years under a multi-year agreement. The deal is expected to close on August 1, with the New Zealand Commerce Commission approving the transaction.

Warner Bros. Discovery (WBD) has sold its local channels operations in New Zealand to Sky New Zealand for $0.60. The deal, announced on July 22, 2025, involves Sky acquiring 100% of Discovery NZ's outstanding shares. The acquisition includes the TV3 network and its streaming platform, ThreeNow, among other assets [1].

Under the terms of the agreement, Sky will gain control of 35% of the local linear TV ad market revenue share and 24% of the digital TV share. Warner Bros. Discovery will continue to supply content to Sky for several years under a multi-year agreement [1].

The transaction is expected to close on August 1, 2025, following approval by the New Zealand Commerce Commission [1]. Sky expects the deal to deliver revenue diversification and an annual uplift of around $95 million, with significant cost synergies and sustainable earnings growth [1].

Warner Bros. Discovery's managing director for Australia and New Zealand, Michael Brooks, described the deal as a "fantastic outcome" for both companies. He noted that while the business was not commercially viable as a standalone asset, it saw value in Three and ThreeNow for Sky's existing offering [1].

Sky's chief executive, Sophie Moloney, stated that the acquisition supports the company's ambition to be Aotearoa New Zealand's most engaging and essential media company. She expects the deal to deliver incremental, underlying free cash flow from FY26 and sustainable EBITDA growth of at least $10 million from FY28 [1].

The acquisition is a significant shift in the New Zealand media landscape, with Sky gaining a more extensive reach and audience. The deal is expected to have a minimal impact on the content lineup of Discovery NZ platforms [1].

References:
[1] https://www.1news.co.nz/2025/07/22/sky-tv-agrees-to-buy-three-for-1/