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Report: DAZN seeking to raise US$1bn with IPO or asset sale on the cards.
Global digital sports media company also considering selling its Japanese business.
DAZN could pursue SPAC model to go public
OTT specialists previously reported to be selling Goal soccer platform
Global digital sports media company DAZN has revived talks to raise as much as US$1 billion in funding, according to Bloomberg.
The UK-based over-the-top (OTT) specialist is reportedly speaking with advisers about options including a stock-market listing. DAZN is in the early stages of considering an initial public offering (IPO), Bloomberg said, and has also held talks about going public through a special purpose acquisition company (SPAC).
A divestment of assets is reportedly another option to raise funds, with DAZN having discussed selling a stake in its Japanese business.
According to the report, these discussions are at an early stage and no firm path has been decided on.
DAZN reorganises leadership team with focus on non-live, user experience and growing subs
The pandemic hit DAZN hard as its flexible consumer pricing model saw subscribers drop the service when most of the major sports properties in DAZN’s rights portfolio suspended play. The company is reportedly on track to return to its pre-Covid levels of subscribers by the fourth quarter.
To date, DAZN’s expansion has been supported by billionaire Sir Leonard Blavatnik who owns the company via his Access Industries Group.
Even prior to the coronavirus pandemic DAZN was known to be seeking additional investment, with an adviser hired last year to help it raise US$500 million. That project was shelved as a result of the global health crisis.
DAZN has also reportedly held talks to sell its soccer news website Goal.com to US-based investment firm TPG, seeking as much as US$125 million, according to the New York Times.
There has been a major overhaul of the executive team and DAZN’s strategy since Covid-19 hit. Simon Denyer stepped down as chief executive, with James Rushton looking set to take on that position at the helm of a leadership team that he recently reorganised.
DAZN has spent the last couple of months assessing its broadcast rights investments and moved to end contracts early where possible, with a view to realigning around premium core properties. So whilst it has dropped Uefa Champions League soccer rights in Southeast Asia it has also doubled down on investing in domestic top-flight Bundesliga soccer packages for its German service.
The company is also in the process of beta testing a boxing-centric global streaming service which was delayed but is now scheduled to go live later this year.