Sky TV Buys Discovery NZ For One Dollar
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Sky TV has announced it will buy Discovery New Zealand for $1, taking full ownership of the broadcaster behind TV3 and the streaming platform ThreeNow. Discovery NZ is currently owned by global media giant Warner Bros. Discovery.
The NZX-listed company said the acquisition would be completed on a cash-free, debt-free basis, with the transaction expected to finalise on 1 August.
Sky believes the deal will strengthen its media presence in New Zealand by broadening its revenue sources. It is forecasting an uplift of approximately $95 million per year once Discovery NZ is integrated.
Sustainable earnings growth of at least $10 million is anticipated from the 2028 financial year onwards, as Discovery NZ becomes part of Sky’s wider operations.
Sky’s chief executive Sophie Moloney said the acquisition fits well with the company’s vision for the future. “This is a compelling opportunity for Sky that directly supports our ambition to be New Zealand's most engaging and essential media company,” she said. The expected integration costs are around $6.5 million.
The Commerce Commission had been notified confidentially about the deal and confirmed it would not be reviewing the acquisition further.
Michael Brooks, managing director for Warner Bros. Discovery Australia and NZ, described the outcome as a positive one for both parties. “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.
Brooks added that while Discovery NZ was no longer viable as a standalone business under Warner Bros. Discovery’s ownership, it could still offer real value when paired with Sky’s assets.
Once the deal is finalised, Discovery NZ’s balance sheet will be cleared of long-term obligations like property leases and content commitments. Sky will also gain access to the ThreeNow platform as part of the agreement.
Sky reaffirmed that this acquisition does not impact its financial outlook. The company remains confident it will meet its 2026 dividend goal of 30 cents per share.