- Decade-long foray in sports broadcasting coming to an end
- TNT operations lost £187.5 million last year
- Intense sports rights competition has become too costly
BT’s (BT.A) sports broadcasting adventure is coming to an end after a decade of Premier League football and much else. The UK telco is reportedly in advanced negotiations to sell its 50% stake in UK broadcaster TNT Sports to Warner Bros Discovery (WBD:NASDAQ), its US joint venture partner.
A deal could be announced as early as next week, coinciding with BT’s full-year earnings, though timing may still shift depending on the progress of discussions.
The sale would mark the end of BT’s foray into sports broadcasting, a strategic move once intended to boost broadband subscriptions through exclusive football content.
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Warner Bros Discovery already holds the option to buy out BT by the end of 2025, and acquiring full control would strengthen its hand as it integrates sports into its European streaming service, set to launch in the UK next year.
According to the Financial Times, TNT has been a financial drag due to costly competition with Sky and Amazon (AMZN:NASDAQ) over major sports rights. In the 2024 financial year, the business posted a pre-tax loss of £187.5 million.
BT is reckoned to value its stake in the joint venture at more than £750 million, although analysts view that figure as wishful thinking, with any transaction likely be priced well below that figure.
BT shares have rallied 13% so far this year at 166.5p, although the stock remains down on 10-year highs of nearly 500p, and far below all-time peaks of close on £10 during the dot com bubble.
