Saudi Arabia expresses interest in becoming part of DAZN.
The wealthy Saudi Arabian investment fund, PIF, is thinking about purchasing a slice of the sports streaming service DAZN. DAZN is managed by the investment corporation Access Industries, headed by billionaire Len Blavatnik. As reported by Reuters, PIF might be offering $1 billion for a 10% share. If the Saudis successfully close the deal, their control over European football could strengthen. DAZN airs matches from the Bundesliga, Italian Serie A, Spanish La Liga, and French Ligue 1.
PIF is overseen by Crown Prince Mohammed bin Salman, who essentially governs the country. PIF is involved in a group that includes the English Premier League team Newcastle United and Saudi Pro League clubs such as Al-Nassr, where the famous footballer Cristiano Ronaldo plays.
Discussions between PIF and DAZN have been happening since the end of last year but haven't progressed much, according to two individuals close to the situation as reported by Reuters. Whether the deal will go through remains uncertain.
DAZN has reportedly talked about partnerships with at least three investment funds for strategic purposes in the recent past, aiming for a total evaluation of $10 to $12 billion for the potential deal. The Saudi offer falls on the lower end of this target range. Neither PIF nor DAZN's representatives have responded to inquiries.
DAZN, which challenges conventional television and satellite broadcasts, provides access to an array of sports material, such as American football, basketball, and baseball, through its online streaming platform. PIF has pumped billions into football and other prestigious sports like Formula 1 and golf in recent years. Saudi Arabia is scheduled to host the FIFA World Cup in 2034.
The European Parliament could potentially offer its assistance to the Commission in relation to this potential deal, as the Commission may need to scrutinize any foreign investments in EU companies, such as DAZN.
If the partnership between PIF and DAZN materializes, the European Parliament, through the Commission, might play a role in ensuring compliance with EU merger and competition regulations.
