The Public Investment Fund (PIF) of Saudi Arabia is reportedly considering acquiring a minority stake in the UK-based sports streaming service, DAZN. Backed by billionaire Len Blavatnik, DAZN seeks a company valuation between $10 billion to $12 billion in potential acquisition talks. According to insiders, PIF is contemplating a $1 billion investment for about 10% of DAZN's shares.
DAZN, a broadcasting partner for major football leagues like Serie A, La Liga, Bundesliga, and Ligue 1, would see an increase in PIF's influence in European football if the deal goes through. The PIF, chaired by Saudi Crown Prince Mohammed bin Salman, already holds investments in Newcastle United and multiple Saudi Pro League clubs, including Cristiano Ronaldo's Al-Nassr.
Negotiations between PIF and DAZN have been ongoing since late last year but have not progressed significantly. DAZN has engaged with at least three investment funds recently for strategic partnerships, aiming for a total valuation of $10 billion to $12 billion.
Offering a wide range of sports content, including American football, boxing, and baseball, DAZN competes with traditional TV and satellite channels. The platform recently secured broadcasting rights for the "Six Kings Slam," an elite tennis event in Saudi Arabia, featuring stars like Novak Djokovic and Rafael Nadal. Additionally, DAZN will broadcast Saudi Pro League matches and Riyadh Season's boxing series in several regions.
DAZN's latest financial results show a 41% revenue increase to $2.1 billion in 2022, driven by higher subscription prices and expanded Bundesliga and Serie A streaming rights. However, the company recorded an operating loss of $1.06 billion due to rising rights costs. The diverse sports broadcasting rights offered by DAZN are a significant factor drawing PIF's investment interest, as the fund has already invested billions in high-profile sports such as Formula 1 and golf.
