Sky New Zealand Acquires Discovery NZ

Sky New Zealand has reached a deal with Warner Bros. Discovery to take control of Discovery NZ, operator of Three and a raft of other networks, for $1 on a cash-free, debt-free basis.

Discovery NZ owns Three, ThreeNow, eden, Rush and HGTV. WBD will retain ownership of its remaining assets in New Zealand market, including pay TV channels, HBO Max and Warner Bros. International Television Production (WBITVP) New Zealand. The deal also includes a multi-year commercial agreement for continued supply of WBD content.

Sophie Moloney, chief executive of Sky, said: “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. 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. ThreeNow and Three are much-loved brands. We recognize the substantial work and investment undertaken by Discovery NZ in the past 12 months to create a more digital-focused business with a significantly reduced cost base. We are confident Sky is 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.”

Michael Brooks, managing director for Australia and New Zealand at WBD, added: “This is a fantastic outcome for both WBD and Sky. 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 the WBD 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. We have been proud custodians of Three and ThreeNow, and recognize the special place they hold for New Zealanders, and as part of the wider media environment. Sky provides a viable new home for these much-loved brands and we look forward to seeing them evolve in this next chapter.”

Juliet Peterson, VP and head of networks, will continue to lead the Discovery NZ business, reporting to Moloney. “We are looking forward to welcoming our new colleagues. They are an excellent and highly-regarded team with strong capabilities in digital, free-to-access and advertising. We will be supporting everyone closely as we work through the details of the longer-term transition.”