MediaWorks confirms sale of TV business to Discovery Inc

Broadcaster MediaWorks has entered into a binding agreement with Discovery Inc regarding the sale of MediaWorks’ broadcast television business.

The transaction is subject to a series of approvals prior to completion and is expected to close by year-end, the company said in a statement. No sale price was disclosed.

The deal includes entertainment channels Three and Bravo, streaming service ThreeNow and multiplatform news and current affairs service Newshub, as well as other channels Three + 1, Bravo + 1, The Edge TV and The Breeze TV.

“I think Discovery is the ideal new owner to continue that momentum in the television business,” said MediaWorks President Jack Matthews.

“The sale will allow MediaWorks to have a greater strategic focus on the long-term future growth of its highly successful and market-leading radio and out-of-home business, offering effective advertising solutions to our clients and great news and entertainment for our audiences. .. “

MediaWorks claims to be New Zealand’s largest independent broadcaster, with an audience of more than 4 million on its television, radio and digital platforms. The company put the unprofitable television division up for sale in October last year.

In June, the Herald reported that Discovery Inc was a source broker to buy the television arm of MediaWorks.

Discovery has been active in the local market recently, last year it acquired Top TV, which operates Choice and HGTV channels in this market.

It also has a close association with the pay TV station Sky, which broadcasts the Discovery Channel among its array of entertainment options.

Founded in 1985, Discovery is a multi-million dollar media giant employing more than 9,000 people around the world. In addition to the Discovery Channel, it also owns and operates Animal Planet, the Food Network, and a variety of other media properties.

In New Zealand, Discovery operates a portfolio of six pay TV channels, including the Discovery Channel, TLC, Animal Planet, Food Network, Living and Discovery Turbo, and two free channels HGTV and Choice TV.

Simon Robinson, President of Discovery APAC, said: “This is an exciting time for Discovery. MediaWorks TV is New Zealand’s leading free-to-air commercial broadcaster with popular shows and big brands.

“With a 26-year heritage in the New Zealand market, we are committed to driving the future growth and success of MediaWorks TV, delivering greater value to audiences and advertisers on all screens in New Zealand.”

MediaWorks marked the sale negotiations when it reported a loss of $ 25.14 million for the year through December.

The loss was largely due to an impairment of $ 21 million, including a write-down of $ 12.13 million in property, plant and equipment assets.

In May, the company announced the layoff of 130 employees at its radio and sales teams.

“Covid-19 has at the same time changed the world and impacted our business in ways that we could neither predict nor anticipate,” Chief Executive Officer Michael Anderson said in an email to staff at the time.

“The market in which we operate has also completely changed and this means that we must adapt to ensure our survival and sustainability in the coming months.

New CEO of TV

As MediaWorks and Discovery work to complete the transaction, Glen Kyne
has been appointed General Director of TV, a function that will continue under the charge of Discovery
termination.

Discovery’s operations in Australia and New Zealand will move under the direction of Simon Robinson, President of APAC.

Meanwhile, Gareth Codd has been named MediaWorks Interim Business Director.
Group in the meantime. Rebecca Kent, General Manager, Discovery Australia, New Zealand and the Pacific
Islands, will continue to oversee New Zealand’s pay TV portfolio and the
Choice and HGTV channels, and Australian operations.

MORE TO COME