Surj Sports Investment Acquires Stake in DAZN, Set to Transform Middle East Sports Content Landscape
Saudi Arabia's Public Investment Fund (PIF), through its sports investment arm Surj Sports Investment, has acquired a minority stake in billionaire Len Blavatnik's global sports streaming service DAZN in a landmark deal poised to reshape the sports content landscape in the Middle East.
This long-awaited agreement, rumored to involve PIF investing $1 billion for a 10% stake in DAZN, grants Saudi Arabia a strategic foothold in DAZN, which rivals regional powerhouse beIN Sports in the Middle East and North Africa (MENA). Ironically, Qatar, the home of beIN Sports, hosted the FIFA World Cup in 2022, while Saudi Arabia will be hosting the 2034 edition.
Founded in 2007, London-based DAZN has earned the sobriquet "Netflix of sports." It has expanded to over 200 markets, fueled by an aggressive sports rights acquisition spree that resulted in a £1.2 billion ($1.51 billion) loss for 2023. The partnership with Surj Sports will significantly bolster DAZN's financial position.
Surj and DAZN will establish a joint venture called DAZN MENA to "unlock new broadcasting opportunities for Saudi Arabia's growing sports sector," according to a joint statement from the companies. The venture will drive Saudi Arabia's emergence as a major sports investment hub while capitalizing on the rising demand for quality sports broadcasting.
Saudi Arabia has ramped up its investments in soccer, boxing, and tennis in recent years, and DAZN is already the preferred streaming platform for Saudi boxing and soccer.
"Surj supports the leadership of DAZN, and our partnership will accelerate DAZN's growth and capitalize on the significant and growing demand for high-quality sports broadcasting," said Danny Townsend, CEO of Surj Sports Investment.
"This investment aligns with Surj's mandate to enhance fan engagement, foster sports participation, unlock game-changing opportunities, and showcase the region as a destination for world-class sports," the statement added.
Shay Segev, CEO of DAZN, commented: "DAZN is the sole global entertainment platform dedicated to sport, placing us optimally to broaden access to sports content globally from Saudi Arabia's burgeoning sports sector."
"Through the DAZN MENA joint venture with Surj, DAZN is committed to maximizing the reach and accessibility of sports while providing an unmatched entertainment experience to a global community of passionate fans," he added. "This landmark partnership will transform the sports entertainment landscape in Saudi Arabia and the wider region."