Green light for BT-Eurosport joint venture

The uk’s competition watchdog has waved through a deal between BT and uS giant Warner Bros Discovery to create a new sports broadcasting business.

BT Sport will combine with Warner Bros Discovery’s eurosport uk, giving customers access to content including the uefa Champions League, Premiership football, the Olympic Games, tennis Grand Slam tournaments and the Tour de France cycle race.

The Competition & Markets authority (CMa) launched a probe into the deal last month to assess whether there would be a ‘substantial lessening’ of competition, and has decided not to refer the merger for a more in-depth ‘phase two’ probe, in effect giving it the go-ahead.

BT and Warner Bros Discovery’s venture could be worth hundreds of millions of pounds. ‘Today is a huge milestone, as we now look toward day one of the new business,’ said Marc allera, head of BT’s consumer division and future chairman of the joint venture.

BT shares fell 2.1pc, or 3.85p, to 177.2p despite the approval. under the deal, BT will transfer the BT Sport business to Warner Bros Discovery but retain a 50pc stake in the venture with both having equal representation on its board.

Both BT Sport and eurosport uk will remain separate at first, before being brought under a single brand in the future.

BT will also receive £93m as well as up to £540m in future if certain conditions are met, which would give the agreement a total value of £633m.

Initially, the venture will mean BT Sport customers will receive more content for the same price as their current contract, although higher fees in the future have not been ruled out.

BT revealed it was in talks with Warner Bros Discovery in February after turning down a sale to streaming group DaZN, which is backed by billionaire Leonard Blavatnik, one of Britain’s richest men.

The tie-up is expected to make the business stronger when bidding for broadcasting rights, thanks to the financial firepower of Warner Bros Discovery, which is worth around £30bn.

But it also sets the stage for an intense battle over the broadcasting rights for european sport, with Warner Bros Discovery facing stiff competition from uS rival Comcast, the owner of Sky.

‘Huge milestone for the business’