$773M Deal Creating Sports TV Giant Under Investigation

Just when BT Group seemed to have found a new corporate home for BT Sport and its coveted Premier League rights, a planned venture with Warner Bros. Discovery faces new challenges.

The U.K.’s regulatory Competition and Markets Authority said it was opening an investigation with BT’s deal with Warner Bros. Discovery to determine if the deal creates an anti-competitive media environment.

• The $773 million deal would link BT Sport with U.K. Eurosport.
• BT Group would earn $113.6 million over three years, plus up to $660 million based on the combined entity’s performance.
• Warner Bros. Discovery would then have the opportunity to buy out BT and take full control of the sports media company.

The first phase of the regulator’s probe will be completed by July 28.

The British telecommunications giant has been seeking to offload BT Sport, first nearing a deal with DAZN before pivoting to a split project with Discovery.

Mega Merger

The deal, which the two sides said should close by the end of the year, would create a powerful sports media force in the U.K. and Ireland.

In addition to the Premier League, the new entity’s broadcast rights would include the UEFA Champions League, the Olympics, Grand Slam tennis tournaments, UFC, and the Tour de France.

Eurosport and BT Sport would initially remain separate brands before uniting under one name at some point in the future.