Leonid Blavatnik's Access Industries is reorganising its sports streaming service DAZN, which has reported significant losses in recent years. The company has been seeking additional funding to stay afloat and has now decided to overhaul its structure to make it more attractive to potential investors. This move could potentially pave the way for a new equity investment or initial public offering (IPO), which would provide much-needed funds for the business.
DAZN's losses have been significant, with the company reportedly burning through millions of pounds each month. However, the company has a strong portfolio of sports rights and a growing user base, making it an attractive proposition for investors. The restructuring is expected to reduce costs and improve efficiency, making the business more appealing to potential buyers.
Analysts believe that the move is a positive step for DAZN, but also highlight the risks associated with the company's high operating costs. The sports streaming market is highly competitive, and DAZN will need to continue to innovate and expand its user base to remain viable. Despite these challenges, the potential for a new equity investment or IPO is seen as a positive development for the company and its investors.
The Bank of England has been monitoring the company's financial situation and has expressed concerns about its high debt levels. However, the central bank has also acknowledged the importance of the sports streaming market to the UK economy and has stated that it will continue to monitor the situation closely.
The impact of DAZN's restructuring on the FTSE 100 is likely to be minimal, with the company's financial performance not being a major driver of market movements. However, a successful new equity investment or IPO could potentially boost investor confidence and drive up share prices across the sector.