Warner Bros Discovery & BT Confirm Premium Sports Joint Venture For UK, Ireland

deadline.com:

Warner Bros. Discovery and British telecom giant BT Group have confirmed plans to form a 50-50 joint venture, creating a new premium sport offering for the UK and Ireland.

This will see the transfer of the operating businesses of BT Sport to Warner Bros Discovery, effectively merging the content offering of both BT Sport and Eurosport UK.Discussions of the deal were originally reported in February and talks have been ongoing for some time.The JV’s portfolio of premium sports rights will include UEFA’s Champions League and Europa League, Premier League matches, Premiership Rugby, UFC, the Olympic Games, tennis Grand Slams the Australian Open and Roland-Garros, cycling Grand Tours including the Tour de France and Giro d’Italia, and the winter sports World Cup season.BT will receive £93M ($113.6M) from Warner Bros Discovery and up to approximately £540M ($659.3M) by way of an earn-out from the JV, subject to certain conditions being met.

BT will retain a 50% interest in the JV, and Warner Bros Discovery will be granted a call option over BT’s interest in the venture, exercisable at specified points in the first four years.

If the call option is not exercised, BT will have the ability to exit its stake in the JV either through a sale or IPO.Warner Bros Discovery and BT will each directly contribute, sub-license or deliver the benefit of their respective sports rights and distribution agreements for the UK and Ireland to the JV, the companies said.