Saudi Arabia’s PIF eyeing stake in sports streamer DAZN

Saudi Arabia’s Public Investment Fund is among potential bidders exploring the purchase of a minority stake worth around $1bn in DAZN, the sports-streaming group backed by billionaire Len Blavatnik, two people with knowledge of the matter said.

If successful, such a deal could increase the fund’s influence in European football as DAZN is a broadcasting partner for Italy’s Serie A, Spain’s LaLiga, Germany’s Bundesliga and France’s Ligue 1.

PIF, chaired by Saudi Prime Minister and Crown Prince Mohammed bin Salman, is part of a consortium that owns English Premier League football club Newcastle United as well as other Saudi Pro League clubs including Al-Nassr, where Portuguese footballer Cristiano Ronaldo plays.

The fund has discussed investing around $1bn for about a 10 per cent stake in London-based DAZN, the people said, speaking on condition of anonymity as they were not authorized to speak publicly.

Discussions between PIF and DAZN have been ongoing since late last year but are not advanced, one of the people said, cautioning there is no certainty a deal will happen.

DAZN has held conversations with at least three investment funds in recent months over various strategic partnerships and is seeking an overall valuation of $10bn to $12bn in a potential deal, a third person with knowledge of the process said.

DAZN, which competes against traditional TV and satellite channels, provides access to a range of sports content, including American football, boxing, and baseball, over its online streaming platform.

It would be the first streamer of its kind to attract possible investment from PIF, which has poured billions into other high-profile sports such as Formula 1 and golf in recent years.

DAZN acquired rights in September to broadcast the Six Kings Slam, a new elite tennis exhibition featuring Novak Djokovic and Rafael Nadal in Riyadh later this month.

It also broadcasts the Saudi Pro League in several territories and the Riyadh Season series of boxing matches, according to its website.

DAZN’s revenue jumped by 41 per cent to $2.1bn in 2022 as it increased subscription prices and added domestic streaming rights to Bundesliga and Serie A to its platform, according to its latest results.

However, it recorded an operating loss of $1.06bn due to increased rights costs.

DAZN had been in talks with advisers last December to raise as much as $1bn to boost its streaming-rights portfolio, Bloomberg reported.

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