Sky NZ sells production subsidiary to NEP
Sky New Zealand, the pay-television broadcaster, has sold its sports production arm to US-based company NEP.
As part of its acquisition of Sky’s Outside Broadcast (OSB), NEP will receive assets including six broadcasting trucks, two warehouses and all ancillary equipment.
Under the agreement, NEP will also serve as Sky's technical production partner in New Zealand for the next 10 years.
The terms of the transaction are undisclosed.
Sky acquired OSB in 2010 from Prime Media Group, the Australia-based media company, in a NZ$35 million ($22.6 million) deal.
Chief executive Martin Stewart said the sale will enable Sky to “reduce its future capital investment in multi-million dollar OB equipment, drawing instead on NEP’s ability to leverage its global network of technology developments so that Sky’s broadcast offering stays at the forefront.”
The broadcaster projects it will save around NZ$50 million over the next five years from the sale.
Stewart explained: "Sky Sport's focus continues to be delivering quality sport that New Zealanders love, from grassroots to high performance and professional competitions. It is what Sky Sport lives and breathes - that will not change.
“The rate of technological change in the OB space is significant, and the advantage of this transaction is Sky Sport will continue to have access to the best advancements in the OB world without Sky having to make substantial investments to own equipment.”
Sky said the majority of OSB staff and some of its broadcast specialists will move to NEP, while it will “retain its world-class sports production team who will be working closely with NEP New Zealand to keep the sports action coming.”
The takeover is subject to approval from the country’s Overseas Investment Office and the Commerce Commission, with the relevant documents lodged by both parties.