BT Sport is linking up with Warner Bros. Discovery to create a new sports TV giant in the U.K. and Ireland.
Under the agreement, BT Sport will become a subsidiary of Warner Bros. Discovery in a 50-50 deal.
Telecom company BT Group will earn $113.6 million over the next three years from the deal, plus up to $660 million based on the combined entity’s performance. Warner Bros. Discovery will then have the option to buy out BT.
The two sides expect the deal to close by the end of the year.
By combining BT Sport’s existing rights package and Warner Bros. Discovery’s Eurosport, the new network will hold rights to a plethora of high-value sports properties including:
- English Premier League
- UEFA Champions League
- Grand Slam tennis tournaments
- Tour de France and other cycling events
Warner Bros. Discovery became a single company in April when Discovery completed its $43 billion acquisition of Warner Bros. from AT&T.
Eurosport and BT will initially remain separate brands before merging under one name at some point in the future.
The deal finalizes a plot twist in the fate of BT. Sports streaming service DAZN, which coveted BT Sport’s Premier League rights, appeared close to acquiring the network for $800 million in January.
However, a conflict around BT’s desire to ensure that the network would remain available to its telecom customers created an opening for Discovery.