Warner Bros. Discovery and BT are forming a massive sports TV business

 

Warner Bros. Discovery will soon be operating a massive sports programming platform for the UK and Ireland. The merged WarnerMedia and Discovery company already owns the Eurosport network, and now it's also making BT Sport its wholly owned subsidiary. This joint venture will bring together the sports programming of Eurosport and BT, which include the UEFA leagues, the Premier League, Premiership Rugby, UFC, the Olympic Games, tennis Grand Slams such as the Australian Open and Roland-Garros, as well as cycling tours such as Tour de France. 

Sports streaming service DAZN was on the cusp of acquiring BT Sport for $800 million back in February, but BT Group ultimately decided on going on a 50:50 joint venture with Warner Bros. Discovery. Initially, Eurosport and BT Sport will retain separate brands, but they will be brought together under a single brand in the future. The BT Group will receive £93 million ($113.3 million) within three years following the transaction completion and up to £540 million ($658 million) of additional payment based on how the business performs during the earn-out period. 

While the joint sports venture is set to become a massive competition for Sky Sports, it will enter a new agreement with Sky for the distribution of their combined sports programming beyond 2030. BT TV and BT Sport subscribers will also also get access to the discovery+ streaming service, which serves as home to Eurosport's live and on-demand videos in the UK and Ireland.