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Global digital sports media company DAZN has revived talks to raise as much as US$1 billion in funding, according to Bloomberg.
Bloomberg reports that the company is speaking with advisors on the differing options, including divestment of assets and a strategic initial public offering.
The UK-based over-the-top (OTT) specialist is reportedly also exploring a IPO to raise funds. 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.
Sports Business : DAZN has been hit hard by Covid19 pandemic and has moved out of many rights portfolios
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.
This month however, James Rushton, DAZN Group’s acting chief executive, has said that the paying subscriber base is on track to be “fully recovered to pre-Covid levels” by the fourth quarter of this year.
Despite this, the streaming service has sought to reduce costs in some of its markets. It has ended its various rights deals in the market of Brazil including Copa Sudamericana competition and moved to terminate its Uefa Champions League rights in southeast Asia one year early, before it even had the opportunity to launch its platform in the region.
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.
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