Sky Buys Discovery NZ for Bottom Dollar
July 22, 2025 
6 Comments
Sky TV has just announced it is buying Discovery NZ in a bottom-dollar deal that includes the Three network, its free-to-air sister channels and ThreeNow.
Here’s the media release:
Sky poised for growth with acquisition of Discovery NZ
Sky New Zealand (Sky) and Warner Bros. Discovery (WBD) today announced that Sky will purchase 100% of the shares in the local WBD subsidiary Discovery NZ Limited (Discovery NZ).
Discovery NZ owns and operates Three, ThreeNow, eden, Rush, and HGTV.
WBD will retain ownership of its remaining assets in the New Zealand market, including pay TV channels, streaming service HBO Max and Warner Bros. International Television Production (WBITVP) New Zealand.
The acquisition of Discovery NZ delivers a suite of complementary assets to Sky’s existing portfolio, including broadcast video on demand (BVOD) platform ThreeNow, and free-to-access linear channels.
Sky will be acquiring 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.
Sophie Moloney, Chief Executive of Sky said: “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.
“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.
“ThreeNow and Three are much-loved brands. We recognise the substantial work and investment undertaken by Discovery NZ in the past 12 months to create a more digital-focused business with a significantly reduced cost base.
“We are confident Sky is uniquely placed to take the business forward and give effect to the opportunity to accelerate our growth strategy.
“We see strong value in ThreeNow’s high quality broadcast video on demand platform, and Three’s mass reach, and we are looking forward to creating opportunities to do more with our content, for more New Zealanders, in more ways that work for them across a comprehensive portfolio of subscription and free-to-access platforms.”
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.”
Completion of the sale is expected to take place on 1 August 2025, and Juliet Peterson, Vice President, Head of Networks, will continue to lead the Discovery NZ business, reporting to Sophie Moloney.
Sky has no immediate plans to change the content line up on any of the Discovery NZ platforms related to this acquisition.
The two businesses are working together on a structured transition plan that will see the Discovery NZ team join Sky in the coming months.
Sophie Moloney continues: “We are looking forward to welcoming our new colleagues. They are an excellent and highly-regarded team with strong capabilities in digital, free-to-access and advertising. We will be supporting everyone closely as we work through the details of the longer-term transition.”
Sky and Discovery NZ gave the Commerce Commission confidential advance notice of the transaction. The Commission looked at the commercial circumstances and advised the parties that it did not intend to consider the acquisition further.
I wonder what will happen to all those WBTV branded FAST channels? — Jon.
Looks to me they have used it to further secure access to WBD content and block any further launch of a D2C HBOMAX product – quote from Stuff today: “The transaction includes a significant and ongoing content supply agreement for WBD’s premium content, for the mutual benefit of both parties.” — Sam.
I find it interesting that Sky wanted a BVOD service and didn’t want to launch its own due to cost even though they had Sky Go. If this deal hadn’t of been allowed,I bet Sky would of have developed a smart TV app for Sky Go or Sky Open. I know the media sector is struggling but its always sad to see a competitor swallowed up by another large corporate. Hopefully there aren’t too many channel closures and cost cutting. I also hope news is invested in and given a lifeline despite Sky’s CEO saying no to inhouse news. Interesting times ahead. I wonder what Trevor would say of today’s developments … — Leo.
Looking back on this deal, I do wonder if all or some of ThreeNow’s biggest hits end up behind the Neon paywall. Are their any guarantees that The Traitors and numerous first-run dramas won’t have an exclusive window period on Neon before ThreeNow, Philip? I do worry that Sky will end up mining ThreeNow for Neon’s benefit leaving ThreeNow with repeats. — Leo.
Is Bravo NZ part of the Sky deal Philip? I see the companies office states WBD sold its Bravo NZ stake to NBC Universal for $1 in December. I know they signed a new deal with NBCU in January but the selling of the 50% stake wasn’t mentioned. This suggests Bravo is a stand alone operation without Three’s parent. Any new developments from this deal Philip? Will Bravo be relegated down to channel 4 to allow Sky Open to move up the channel pecking order? — Leo.
All great points Leo. No, Bravo isn’t included in the Sky deal, only Three, ThreeNow, Eden, Rush and HGTV. Too soon to say what will happen to Sky Open on the channel hierarchy given it will be business as usual for the next few months, with no obvious changes, and thereafter Sky Open’s fortunes could rise or fall depending on the programming strategy Sky adopts for Three.