In some breaking news, it has been announced this morning that News Corp has finalised an agreement to sell the Foxtel Group to DAZN, a global sports streaming platform, in a deal that values Foxtel at an enterprise worth of A$3.4 billion.
The transaction, reported to be in the works earlier this month, includes the repayment of A$706 million in shareholder loans and grants News Corp a minority equity stake of approximately 6% in DAZN, alongside a seat on its board of directors.
Telstra, which holds a 35% stake in Foxtel, will also sell its minority interest, receive repayment of A$128 million in loans, and secure a 3% stake in DAZN. The deal represents more than seven times Foxtel’s forecasted fiscal 2024 EBITDA and is expected to close in the second half of fiscal 2025, subject to regulatory approvals.
Foxtel, which will continue under the leadership of current CEO Patrick Delany and management team, will remain an Australian-based business, leveraging DAZN’s global reach and technology to enhance its digital and streaming services.
The acquisition will also enable DAZN to expand its footprint in the Australian market, bringing international sports content to local audiences while looking to export Australian sports to new markets.
The sale reportedly aligns with News Corp’s strategy to streamline its portfolio and focus on growth pillars like Dow Jones, digital real estate, and book publishing. News Corp CEO Robert Thomson has described the agreement as a “victory” for shareholders and an opportunity for DAZN to elevate Foxtel’s standing in the sports and entertainment landscape.
DAZN CEO Shay Segev highlighted Australia’s love of sport as a key motivator for the acquisition, pledging to invest in Foxtel’s services such as streamers Binge, KAYO Sports, while promoting diverse sports and enhancing the viewing experience for customers.
Foxtel Group Chairman Siobhan McKenna lauded the transformation of Foxtel under News Corp’s stewardship, while Delany emphasised the company’s commitment to continue delivering locally-produced sports and entertainment content.
The transaction reflects DAZN’s ambition to become a global leader in sports streaming, adding Foxtel’s 4.7 million local subscribers to its portfolio as it continues to grow across over 200 markets worldwide.
*This post updates
wikipeada also says “The sale, among other assets, will give DAZN control of Foxtel’s Fox Sports networks and Hubbl streaming business, which includes competing OTT service Kayo Sports”