DAZN sells minority stake to Saudi Arabia’s Surj

Saudi Arabia-backed Surj Sports Investment is to invest $1bn (£790m) to acquire a minority stake in Len Blavatnik’s DAZN, with plans for a joint venture streamer in the works.

The deal, which was widely predicted last month, will see the two companies working together to launch DAZN MENA, a joint venture that aims to “unlock new broadcasting opportunities” for Saudi Arabia’s sports sector and “accelerate” access to live and on-demand sports.

The agreement will also see DAZN working with Surj to provide coverage of Saudi teams and sporting events.

DAZN has been in active mode of late, recently striking a deal to acquire Australian broadcaster Foxtel for £1.7bn and picking up rights to FIFA’s Club World Cup for a reported $1bn, which it has announced it will air for free.

FIFA and Saudi Arabia have also forged close ties recently, with the nation awarded the 2034 men’s World Cup.

Further details of Surj’s investment have not been revealed but the Financial Times said it is believed to hand the Saudi fund a stake of less than 5% and value DAZN at around $10bn. 

Danny Townsend, Surj Sports Investment chief exec, said the deal marked “a really exciting opportunity to build on DAZN’s significant successes in recent years by bringing more sports to fans and audiences around the world.”

He added: “Surj supports the leadership of DAZN, and our partnership will accelerate the growth of DAZN and capitalize on the significant and growing demand for high-quality sports broadcasting.

“This investment will help Surj achieve its mandate of driving fan engagement, encouraging sports participation and unlocking game-changing opportunities, and further showcasing the region as a destination for world-class sports.”

Shay Segev, DAZN chief exec, added: ”DAZN is the only truly global entertainment platform dedicated to sport, which makes us ideally positioned to expand access to sports content globally from Saudi Arabia’s growing sports sector.

“As part of the DAZN MENA joint venture with Surj, DAZN is committed to maximizing the reach and accessibility of sports, while delivering the best entertainment experience to a global community of passionate fans. This is a milestone partnership for the group, which is bound to transform the sports entertainment landscape in Saudi Arabia and the wider region.”

DAZN recently revealed its 2023 accounts, which showed that it lost $1.4bn (£1.1bn), although Segev countered in an interview with the Financial Times that the company ”is profitable in most of its top ten markets.”