BT set to sell TNT Sports stake to Warner Bros Discovery – FT

Investing.com -- BT Group PLC (LON:BT) is in advanced negotiations to sell its 50% stake in U.K. broadcaster TNT Sports to Warner Bros Discovery Inc (NASDAQ:WBD), its U.S. joint venture partner, the Financial Times reported on Saturday.

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 report added.

The sale would mark the end of BT’s decade-long foray into sports broadcasting, a strategic move once intended to boost broadband subscriptions through exclusive football content.

Warner Bros Discovery already holds the option to buy out BT by the end of 2025. Acquiring full control would strengthen its hand as it integrates sports into its European streaming service, set to launch in the U.K. next year.

According to the FT, TNT has been a financial drag due to costly competition with Sky and Amazon (NASDAQ:AMZN) over major sports rights. In the 2024 financial year, the business posted a pre-tax loss of £187.5 million.

Though BT values its stake in the joint venture at more than £750 million, the report added that any transaction would likely be priced well below that figure.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.Should you invest $2,000 in WBD right now?

With WBD making headlines, savvy investors are asking: Is it truly valued fairly? In a market full of overpriced darlings, identifying true value can be challenging. InvestingPro's advanced AI algorithms have analyzed WBD alongside thousands of other stocks to uncover hidden gems. These undervalued stocks, potentially including WBD, could offer substantial returns as the market corrects. In 2024 alone, our AI identified several undervalued stocks that later surged by 30 or more. Is WBD poised for similar growth? Don't miss the opportunity to find out.

Reveal Undervalued Stocks Now