Bt Sport And Eurosport UK Officially Merge
US media company Warner Bros. Discovery and British multinational telecommunications company BT Group have completed their transaction to form a 50:50 joint venture that combines the assets of BT Sport and Eurosport UK.
BT entered into exclusive talks with the Warner Bros. Discovery to merge BT Sport with the Discovery-owned Eurosport in February. The agreement is worth as much as £633m to the telecoms operator.
The deal has been set for official completion for months, with an agreement originally reached back in May.
The structure of the joint venture agreement, which will see the company operated by Warner Bros Discovery, will see BT receive a £93m payment in instalments over three years after completion of the deal. BT will also receive up to £540m based on performance of the operation over a period of four years. This could pay out sooner if either the £540m performance cap is hit, or Warner Bros Discovery trigger a call option to take full control.
Both BT Sport and Eurosport UK will initially retain their separate brands and product propositions in the market before being brought together under a single brand in the future.
The move brings together one of the most extensive line-ups of live sport coverage for fans in the UK & Ireland – including the Olympic Games, the Premier League, UEFA Champions League, UEFA Europa League, the Premier League, Premiership Rugby, MotoGP, UFC, Boxing, WWE, tennis Grand Slams, cycling Grand Tours and the winter sports World Cup season.
The joint venture’s Board of Directors is equally represented between appointees of BT and Warner Bros. Discovery. The first Chairperson, nominated by each shareholder on a rotating basis, is Marc Allera, CEO of BT’s Consumer division. Andrew Georgiou, President and Managing Director, Warner Bros. Discovery Sports Europe, is also a member of the board and will lead the business.
Marc Allera said, “As we enter our ninth season, today is day one of an exciting new chapter for BT Sport. I am extremely proud of the teams and the established brand and broadcaster that BT Sport has become, and I look forward to working with Warner Bros. Discovery to create an exciting new sport TV offering for the UK.”
Andrew Georgiou, added, “Today marks the start of our journey to build a new sports destination for fans in the UK and Ireland. Combining BT Sport and Eurosport UK together with Warner Bros. Discovery’s world-class and growing entertainment offering will result in an exciting new proposition for consumers.
“It’s important for fans to know they can continue to enjoy BT Sport and Eurosport UK as they do today and we’ll keep them updated on future plans as soon as we can. We are pleased the transaction has closed and we can now further engage all stakeholders in the process of establishing the joint venture and developing its extensive combined sports offer.”
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