SKY Network Television (NZE:SKT, ASX:SKT) has agreed to acquire 100% of Discovery NZ, including the ThreeNow streaming platform and free-to-air channel Three, from Warner Bros. Discovery (WBD) on a cash-free, debt-free basis for NZ$1.

The deal is expected to complete on August 1, according to a Tuesday filing with the New Zealand and Australian bourses.

The acquisition is expected to boost the company's annual revenue by approximately NZ$95 million, with around 25% from digital sources, increase its television advertising market share, deliver cost synergies, and generate positive free cash flow from fiscal year 2026 while achieving at least NZ$10 million in earnings before interest, taxes, depreciation, and amortization growth by fiscal year 2028, the filling said.

WBD will offer transitional services for 12 months following completion, with the company anticipating integration expenses of around NZ$6.5 million, the filing added.