Sources said that the sale of an equity stake in the business is Blavatnik's preferred optiongetty images
DAZN is "racing to secure its financial future," with Perform Group Owner Len Blavatnik "exploring options to raise money for a business hard hit by the pandemic," according to Ahmed, Barker, Lewis, Fontanella-Khan & Seddon of the FINANCIAL TIMES. Sources said that Blavatnik is “exploring ways to inject new money into the lossmaking business ... with the sale of an equity stake in the business the preferred option.” However, sources said that an outright sale "would also be considered.” Two years ago, the company was valued at $3.7B (all figures U.S.) when it sold a 10% stake to Japanese advertising firm Dentsu for $370M. Sources said that DAZN currently is "unlikely to reach a similar valuation.” Sources added that in recent weeks, the group has "approached big media companies over a potential investment, including John Malone’s Liberty Global," but has "received little interest in a deal." The global suspension of sports events during the pandemic “has seen some subscribers pause monthly payments.” DAZN also has “sought to defer payments it owes to sports leagues, citing the lack of live action.” The company hired Goldman Sachs last year, seeking to raise $500M, but sources said that it "paused that effort at the start of the pandemic" (FINANCIAL TIMES, 5/24). NBC NEWS' Byers & Garcia-Hodges cited a source as saying that DAZN had "been able to stem financial losses by deferring sports rights payments and decreasing marketing spend, usually two of its biggest expenses" (BYERS MARKET, 5/26).
