DAZN Lost Billions in 2021, Postpones IPO Plans

DAZN, a powerful platform for streaming sports content, recently made public its intention to investigate the possibility of going public over the next three years. This information emerges in the aftermath of a report detailing the corporation’s losses in 2021.

DAZN Lost Billions in 2021

DAZN is a sports streaming startup that aspires to become the next superpower in the media industry and achieve a level of success comparable to that of media behemoths such as Amazon and Netflix. Unfortunately, despite the company’s best efforts, it has not been possible to attain the required level of performance, which has resulted in significant financial losses.

Since its inception in 2016, DAZN has racked up losses totaling over $6 billion throughout the past few years. The most recent financial statements for the corporation revealed that it incurred a loss of $1.35 billion in 2021, accompanied by an interest payment of $900 million on a loan to the company’s shareholders. This pushed the total amount of money the corporation had to give up in 2021 to $2.3 billion.

This makes the company’s problems worse and requires them to delay their plans to have an initial public offering. DAZN has been planning its first public offering for quite some time now. Unfortunately, the corporation has been unable to move through with these objectives due to the many obstacles that have arisen.

The Company Hopes to One Day Go Public

According to Shay Segev, CEO of DAZN, the global socioeconomic crisis has prohibited the company from moving forward with its ambitions.

Furthermore, various issues and strategic initiatives caused the corporation to lose billions of dollars in 2021. Obtaining broadcasting rights for specific sports leagues harmed the company’s finances even more. Some of the company’s most significant expenses were soccer league rights in Italy and Germany. However, the corporation anticipates that these investments will be profitable.

According to Segev, DAZN’s IPO aspirations will be revived in the next two or three years. He stated that his team is open to strategic investors and has no prejudices. He concluded that DAZN’s ambition is to become a successful public company like Netflix or Amazon.

DAZN Is Growing in Popularity Despite the Setbacks

As a result of DAZN’s meteoric rise in popularity over the past few years, Segev may finally be able to turn his idea into a working reality. The number of people using DAZN has increased, but more is needed to cover the company’s losses. The platform’s services are now available in 225 countries, allowing it to access many important markets.

Despite the high cost of broadcasting rights, DAZN has become Europe’s most successful sports broadcasting company. The company also keeps introducing new content to its platform consistently. This reflects the company’s goal to attract clients by providing sports material that is varied and of excellent quality.

Even though in 2022, DAZN formed a sports betting subsidiary known as DAZN Bet, the company’s principal objective is to become an independent streaming service that is not dependent on betting proceeds. About DAZN Bet, the online sportsbook debuted in Spain a few months ago, increasing the scope of the company’s operations in Europe.