- BT Group Plc (OTC:BTGOF) concluded its long-awaited deal with Warner Bros Discovery, Inc (NASDAQ:WBD) to form a joint venture for its sports business as it reinstated its full-year dividend.
- BT will receive £93 million from Warner Bros Discovery and up to £540 million on an earn-out subject to the accomplishment of specific goals.
- In February, BT announced exclusive discussions with Warner Bros Discovery, opting against a sale of BT Sport to the sports streaming company DAZN, owned by billionaire Sir Leonard Blavatnik, the Financial Times reports.
- The new venture combines a comprehensive catalog of sports broadcast rights spanning the English Premier League and Uefa Champions League football matches in the U.K.
- BT Sport and Discovery's Eurosport U.K. will merge and become a wholly-owned subsidiary of Warner Bros Discovery. BT will retain equal voting rights in the tie-up.
- An analyst described the joint venture as "a marriage of convenience for both companies."
- "BT has been wanting to exit sports for some time, and this is its get out of jail free card," he said, adding that "Warner Brothers Discovery are in the driving seat."
- He questioned whether "the two companies have the financial clout to compete with Sky and others," noting that the "big test" will be if they can maintain exclusive rights to the Uefa Europa League rights this year.
- Price Action: WBD shares traded higher by 0.60% at $16.72 in the premarket on the last check Thursday.
- Photo via Company
