In a deal announced to the NZX at 8:30am NZST today, Sky TV NZ will buy all TV3 brands including Three, Bravo, Eden, Rush, HGTV, and the network’s streaming platform, ThreeNow.
With the completion of the deal, Warner Bros Discovery will exit New Zealand’s free-to-air TV market entirely. It will retain ownership of its remaining assets in the market, which includes its pay TV channels, HBO Max, and Warner Bros. International Television Production (WBITVP) New Zealand. The deal is expected to be finalised on 1st August.
Sky will acquire the shares in Discovery NZ for $1 on a cash-free, debt-free basis. The deal also includes a multi-year commercial agreement for continued supply of WBD’s premium content.
“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,” Sky chief executive Sophie Moloney said.
“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.”
Sky TV NZ has had a lengthy relationship with Warner Bros Discovery. Most recently in 2024, Sky and WBD confirmed a new partnership that would allow Sky to remain the exclusive distributor of HBO and Max content in New Zealand, launching a dedicated linear HBO channel across its platforms.
Sky expects the sale will:
• Deliver Sky revenue diversification and uplift of c.$95m on an annualised basis, with 25% from digital sources
• Add to Sky’s existing audience a growing digital audience via ThreeNow
• Grow Sky’s combined total linear television advertising revenue share to 35% and total digital television advertising revenue share to 24%
• Deliver material cost synergies primarily across Sky’s content and broadcasting infrastructure
• Deliver a pathway to achieve incremental, underlying free cash flow from FY26 and sustainable EBITDA growth of at least $10m from FY28.
Michael Brooks, Managing Director Australia and New Zealand for WBD, said: “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 recognise 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.”