In serious financial difficulty, DAZN is negotiating the sale of part of its shares to Saudi Arabia and the media Reuters has made new revelations on the ongoing negotiations between the two parties.
New main broadcaster of Ligue 1, DAZN is in serious financial difficulty. It’s no real secret that the English streaming platform loses money every year and its owner Len Blavatnik is looking for an investor to help him. According to information from Reuters, DAZN loses more than a billion dollars each year, despite increasing revenues, which increased by 41% in 2022. In recent weeks, negotiations with Saudi Arabia have been revealed, without us knowing until now the content of the ongoing discussions between Len Blavatnik and the Saudi public investment fund.
This week, Reuters media tells us more and affirms that Saudi Arabia would like to buy 10% of DAZN for a sum estimated at one billion dollars, or a little more than 900 million euros. Partner of Serie A, La Liga, Bundesliga and Ligue 1, the platform would be strengthened by a potential partnership with Saudi Arabia and could continue its acquisitions and investments in the world of football more calmly according to the media. However, we must remain cautious because in the Saudi camp, we refuse to say too much.
No agreement yet between DAZN and Saudi Arabia
On the contrary, a source close to the PIF explains that negotiations are underway but are not “not advanced” and there is no “no certainty” for an agreement to be reached. Reuters also reveals that DAZN has had discussions with at least three investment funds in recent months. Len Blavatnik, who values his company between $10 billion and $12 billion, hopes to quickly close a deal, whether with Saudi Arabia or another investor, to make DAZN an even more financially solid platform that will still be called to last over time. Which would not be bad news for Ligue 1 since remember that to date, the platform does not have more than 100,000 subscribers in France.
A terribly low figure when we know that certain Champions League posters broadcast on Canal + approach a million viewers. With DAZN far from profitable in France, support for the platform from Saudi Arabia would necessarily be reassuring news for Ligue 1 clubs.
