BT in negotiations with US rival Discovery to create new sports channel
BT has revealed it is in exclusive negotiations with US media giant Discovery to create a joint venture for its sports business.
In a statement released today BT said it plans to create a new sport and entertainment offering for customers in the UK which will combine BT Sport with Eurosport UK. The British telecommunications company said that it hopes to conclude discussions with Discovery in the first quarter with a view to launching the 50-50 joint venture later this year.
Marc Allera, the chief executive of BT Consumer, said: “the proposed joint venture with Discovery would create an exciting new sports broadcasting entity for the UK and would act as a perfect home for our BT Sport business.
Both Dazn and Discovery have expressed interest in BT’s sports business which has UK rights to sports including Champions League football and Premiership Rugby.
“With a shared ambition for growth, as well as the combination of our world class sports assets along with Discovery’s premium sports and entertainment content, our customers will benefit from even more content in more places,” he continued.
It comes as BT today released lacklustre results for the third quarter. The company saw revenue of £15.6bn in the nine months to December 2021, down by two per cent compared to last year, while profits dipped by three per cent to stand at £1.5bn amid higher finance expenses and inflationary pressure. Net debt, including lease liabilities, increased by £447m to stand at £17.7bn.
BT said it expects revenue for the 2022 financial year to decline by two per cent compared to last year as a result of the ongoing impact of Covid-19 and supply chain issues.