1 00:00:00,240 --> 00:00:00,400 Speaker 1: Right. 2 00:00:00,480 --> 00:00:03,720 Speaker 2: New Zealand's a new player, I should say, has entered 3 00:00:03,760 --> 00:00:06,520 Speaker 2: the market for the coveted rugby rights in New Zealand. 4 00:00:06,559 --> 00:00:09,440 Speaker 2: The Herald understands that ends it are currently in talks 5 00:00:09,680 --> 00:00:14,560 Speaker 2: with the Saudi backed streaming giants Dozone after talks broke 6 00:00:14,600 --> 00:00:18,440 Speaker 2: down with Sky Television. The New Zealand Herald rugby writer 7 00:00:18,640 --> 00:00:21,840 Speaker 2: Gregor Paul broke this story and he's with us this evening, 8 00:00:22,239 --> 00:00:27,920 Speaker 2: good evening, good evening. So is this when we say 9 00:00:28,280 --> 00:00:30,880 Speaker 2: talks broke down with Sky that what does that mean? 10 00:00:31,640 --> 00:00:33,840 Speaker 1: Well, I don't think they've broken down. I think they've 11 00:00:33,880 --> 00:00:37,200 Speaker 1: they've reached a stalemate where they've gone round and roam 12 00:00:37,280 --> 00:00:42,120 Speaker 1: in circles that you know, these two know each other's businesses. Intimately, 13 00:00:42,159 --> 00:00:44,720 Speaker 1: they've been partners for the better part of thirty years. 14 00:00:45,280 --> 00:00:48,320 Speaker 1: Sky had the first right to make an offer, which 15 00:00:48,360 --> 00:00:50,879 Speaker 1: it has done. It has tabled an offer, It has 16 00:00:50,920 --> 00:00:52,839 Speaker 1: given detail why it has made the offer that it 17 00:00:52,880 --> 00:00:57,640 Speaker 1: has New Zealand rugby field. It does not reflect share 18 00:00:57,680 --> 00:01:01,120 Speaker 1: of value in relation to the content that it is 19 00:01:01,160 --> 00:01:05,000 Speaker 1: offering for the next period between twenty twenty six and 20 00:01:05,040 --> 00:01:07,480 Speaker 1: twenty thirty. So they haven't been able to agree a 21 00:01:07,520 --> 00:01:10,679 Speaker 1: price Sky won't badge on that, so as is New 22 00:01:10,760 --> 00:01:14,440 Speaker 1: Zealand Rugby's right, it has gone to talk to any 23 00:01:14,440 --> 00:01:16,640 Speaker 1: other potential bidders to see if they can put a 24 00:01:16,640 --> 00:01:18,120 Speaker 1: better price on the team. 25 00:01:18,360 --> 00:01:20,119 Speaker 2: Is this posturing for me? In Zidan? 26 00:01:21,520 --> 00:01:25,679 Speaker 1: I think Sky think it is. I don't know enough 27 00:01:25,680 --> 00:01:28,680 Speaker 1: to know whether it's a bluff. I suspect it probably is, 28 00:01:28,720 --> 00:01:33,280 Speaker 1: because I don't think that buying you know, the rugby 29 00:01:33,319 --> 00:01:37,400 Speaker 1: rights to New Zealand sits with the With the strategic 30 00:01:37,560 --> 00:01:40,360 Speaker 1: plan that Darzone clearly has for itself, it would be 31 00:01:40,440 --> 00:01:43,039 Speaker 1: difficult to see how it can make that work. And 32 00:01:43,080 --> 00:01:44,959 Speaker 1: I think you'll be aware of Many of the audience 33 00:01:45,040 --> 00:01:48,760 Speaker 1: might be aware that Darzone has been outed as a 34 00:01:48,800 --> 00:01:53,920 Speaker 1: potential buyer of Sky itself. It recently bought Foxtail in 35 00:01:54,000 --> 00:01:56,760 Speaker 1: Australia and that has led many to believe that, look, 36 00:01:56,840 --> 00:02:00,640 Speaker 1: Sky's undervalued at its current price, It's going to reasonably 37 00:02:00,680 --> 00:02:04,520 Speaker 1: good business going here. Would it be something that does 38 00:02:04,560 --> 00:02:07,760 Speaker 1: On might acquire, given that it's already bought Foxtelle, that's 39 00:02:07,800 --> 00:02:11,680 Speaker 1: probably a better question or a more likely strategy for 40 00:02:11,760 --> 00:02:15,400 Speaker 1: it to pursue than just buying rugby rights in New Zealand. 41 00:02:15,800 --> 00:02:18,120 Speaker 2: If Sky were to lose the rights, that would be 42 00:02:18,120 --> 00:02:20,440 Speaker 2: a pretty big glow for them, wouldn't I mean that's 43 00:02:20,440 --> 00:02:21,160 Speaker 2: their bread and butter. 44 00:02:22,280 --> 00:02:25,600 Speaker 1: I think it'd be catastrophic. And I mean we Sky 45 00:02:25,680 --> 00:02:27,920 Speaker 1: don't break their business down to tell you you know 46 00:02:27,960 --> 00:02:31,560 Speaker 1: how many of their subscribers are primarily in there to 47 00:02:31,760 --> 00:02:35,560 Speaker 1: get access to the rugby. But the market itself has 48 00:02:35,600 --> 00:02:38,959 Speaker 1: a view that it's a considerable number, it's the majority. 49 00:02:39,400 --> 00:02:42,440 Speaker 1: So perception is more dangerous in reality for Sky here 50 00:02:42,520 --> 00:02:45,200 Speaker 1: because the markets priced that in. And if they have 51 00:02:45,280 --> 00:02:47,280 Speaker 1: to turn around and say, look, we haven't been able 52 00:02:47,320 --> 00:02:50,160 Speaker 1: to resecure the rights to the old Lacks and to 53 00:02:50,240 --> 00:02:54,280 Speaker 1: Super Rugby, I think they will have a monumental impact 54 00:02:54,320 --> 00:02:57,519 Speaker 1: on its share price and I think consumers and subscribers 55 00:02:57,520 --> 00:02:59,080 Speaker 1: would leave it in their drives. 56 00:02:59,320 --> 00:03:01,400 Speaker 2: Gregor, thanks so much for that, Gregor Paul, the New 57 00:03:01,480 --> 00:03:04,839 Speaker 2: Zealand herold Rugby writer who broke this story. For more 58 00:03:04,919 --> 00:03:08,240 Speaker 2: from Hither Duplessy Allen Drive, listen live to news talks. 59 00:03:08,280 --> 00:03:11,440 Speaker 2: It'd be from four pm weekdays, or follow the podcast 60 00:03:11,560 --> 00:03:12,560 Speaker 2: on iHeartRadio.