• Delivers Sky revenue diversification and uplift of c.$95m on an annualised basis, with ~25% from digital sources
• Adds to Sky's existing audience a growing digital audience via ThreeNow, a BVOD platform
• Grows Sky's combined total linear television advertising revenue share to ~35% and total digital television advertising revenue share to ~24%

Sky today announces it has agreed to acquire 100% of the shares in Discovery NZ Limited (Discovery NZ) from Discovery Networks Asia-Pacific Pte Ltd (a subsidiary of Warner Bros. Discovery, Inc.) for $1 on a cash-free, debt-free basis. The acquisition is expected to deliver Sky revenue diversification and uplift of c.$95m on an annualised basis, with ~25% from digital sources. It will add to Sky's existing audience a growing digital audience via ThreeNow, a BVOD platform that recently recorded its 12th straight quarter of viewership growth. The transaction will grow Sky's combined total linear television advertising revenue share to ~35% and total digital television advertising revenue share to ~24%. Sky expects the acquisition to deliver material cost synergies primarily across its content and broadcasting infrastructure, and a pathway to achieve incremental, underlying free cash flow from FY26 and sustainable EBITDA growth of at least $10m from FY28. The acquisition is a compelling opportunity for Sky that directly supports its ambition to be Aotearoa New Zealand's most engaging and essential media company, positioning it to scale faster, accelerate its growth, and further diversify its revenue streams, particularly in advertising and digital.

The transaction is expected to deliver sustainable EBITDA growth of at least $10 million by FY28.