Sky to Buy Discovery NZ, Including Three and ThreeNow, for $1

In a surprising move that has caught the attention of the New Zealand media landscape, Sky TV has announced the acquisition of Discovery NZ, including the popular channels Three and ThreeNow, for a mere $1. This acquisition, set to be finalized on August 1, marks a significant shift in the ownership of one of New Zealand’s most well-known television networks.

The deal, which includes Stuff’s ThreeNews TV bulletin, was confirmed in a statement to the New Zealand Exchange (NZX) on Tuesday morning. Sky TV stated that it has 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., on a cash-free, debt-free basis.

The acquisition comes after a series of changes in the media sector, including the closure of WBD’s New Zealand newsroom and the end of the 6pm and AM TV news bulletins on channel Three in April of last year. In response, Stuff Group and WBD reached an agreement for Stuff to provide a daily news bulletin, which began on July 6, 2024, the day after the final Newshub bulletin aired.

Sinead Boucher, owner and publisher of Stuff Group, expressed her delight at the news, saying that it is a brilliant move for Sky and for the New Zealand media landscape as a whole. She highlighted that the deal includes Stuff’s delivery of ThreeNews, but also opens the door for new opportunities that both companies are excited to explore. “And who doesn’t love a $1 deal!” she added with a touch of humor.

Sky’s Chief Executive, Sophie Moloney, emphasized that this acquisition aligns with Sky’s ambition to be Aotearoa New Zealand’s most engaging and essential media company. The purchase is expected to help Sky scale faster, accelerate growth, and further diversify its revenue streams, particularly in advertising and digital.

Moloney also noted that acquiring the ThreeNow BVOD (broadcast video on demand) platform adds an important missing component to Sky’s portfolio. This acquisition allows Sky to avoid the brand and platform development costs, as well as the inherent revenue risks that come with building a BVOD service from scratch.

Michael Brooks, Managing Director of Australia and New Zealand for WBD, described the deal as a fantastic outcome for both WBD and Sky. He acknowledged the challenges faced by the New Zealand media industry and praised the Discovery NZ team for their efforts in delivering a new, more sustainable business model following a significant restructure in 2024.

The transaction includes a significant and ongoing content supply agreement for WBD’s premium content, which benefits both parties. As the media landscape continues to evolve, this acquisition is expected to bring stability and new opportunities to the New Zealand television market.

This acquisition signals a new chapter for New Zealand’s media industry, with Sky and its partners poised to shape the future of television in the region.