In a significant development in the sports streaming industry, DAZN, a leading sports streaming service, is reportedly on the brink of securing an investment worth US$1 billion from Saudi Arabia’s Public Investment Fund (PIF). This deal could potentially be concluded by the end of this month.
The sovereign wealth fund has been associated with this substantial investment since October. Initial discussions regarding acquiring a ten per cent stake in DAZN were held in late 2023. If successful, this transaction would value DAZN at an impressive US$10 billion.
This potential partnership would further solidify the relationship between Saudi Arabia and DAZN. The streaming service already broadcasts a variety of sports events from Saudi Arabia including the Saudi Pro League, boxing bouts funded by Saudis, and the Six Kings Slam tennis exhibition event.
Amplifying sporting ambitions
Acquiring a stake in DAZN aligns perfectly with Saudi Arabia's ambitious sporting goals. Saudi Pro League clubs have made significant investments in playing talent. Additionally, PIF and SURJ investment venture have backed prominent entities such as LIV Golf and Premier League soccer club Newcastle United while also supporting WTA tennis tour.
Notably, these efforts culminated when FIFA awarded hosting rights for its 2034 men’s World Cup to the country - marking another milestone achievement for their sporting ambitions.
Expanding global footprint
For DAZN, this deal could provide additional resources to expand its global footprint further. It currently holds domestic rights to several top-flight soccer competitions across France, Germany, Italy and Spain. Moreover it serves as global distributor of Uefa Women’s Champions League (UWCL), various boxing promotions along with NFL's Game Pass International.
DAZN recently agreed to acquire Foxtel in Australia and signed a deal to broadcast the expanded FIFA Club World Cup matches for US$1 billion. The latter deal has particularly intensified speculation about an imminent agreement with PIF, given the strong ties between FIFA and Saudi Arabia.
This potential investment from Saudi PIF could be a game-changer for DAZN. It would not only strengthen its financial position but also provide it with opportunities to expand its reach globally. For sports fans and sports betting enthusiasts, this could mean more access to diverse sporting events across different geographies - making it a win-win situation for all parties involved.
