Sky New Zealand has reached a deal to acquire Warner Bros Discovery’s (WBD) television networks and streaming platforms in the country for the novelty sum of just $1.
The deal announced on Tuesday includes the network Three and the streaming platform ThreeNow, as well as cable channels HGTV, Eden and Rush. Sky New Zealand — which has no connection to Comcast’s Sky Group — will also continue to license programming from WBD, the companies said.
The acquisition is on a “cash-free, debt-free” basis and comes after more than a year of restructuring by WBD to cut costs and streamline operations in the region.
WBD will retain a handful of assets, including its streaming platforms Discovery Plus and HBO Max, as well as Warner Bros. International Television Productions New Zealand (WBITVP NZ).
Sophie Moloney, Sky New Zealand’s CEO, said the acquisition will allow the company to expand its digital and advertising reach.
“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,” 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.”
WBD’s decision to offload the free-to-air business follows a major overhaul in 2024 aimed at cutting costs and adapting to a changing media landscape. Michael Brooks, WBD’s Managing Director for Australia and New Zealand, said the company concluded that Discovery New Zealand no longer fit within its long-term portfolio.
“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,” Brooks said. “This is a fantastic outcome for both WBD and Sky.”
Brooks said the content deal ensures WBD shows will continue to be seen in New Zealand and noted the brands’ strong recognition among local audiences. “We have been proud custodians of Three and ThreeNow, and recognize the special place they hold for New Zealanders,” he said.
Leadership at Discovery New Zealand will remain in place following the transition. Juliet Peterson, the current Vice President and Head of Networks, will continue to oversee the business and will now report to Moloney.
“We are looking forward to welcoming our new colleagues,” Moloney said. “They are an excellent and highly-regarded team with strong capabilities in digital, free-to-access and advertising.”
Sky says the deal strengthens its position across subscription and free-to-air services, with the addition of Three’s broadcast reach and ThreeNow’s on-demand platform expected to boost audience engagement.
