News Corp and Australian telecom company Telstra have agreed to sell Foxtel Group, one of Australia’s leading media companies, to global sports streaming platform DAZN for approximately $2.1 billion.
Under the agreement, News Corp will receive full repayment of $361 million in shareholder loans in cash upon closing. Meanwhile, Foxtel’s existing debt will be refinanced and transferred with the company. Post-sale, News Corp will hold a 6% minority stake in DAZN and gain a seat on its board of directors.
News Corp. while announcing the deal said, “The agreement follows a strategic and financial review of Foxtel as part of News Corp.’s ongoing efforts to optimize its portfolio and simplify the structure of the company” adding, ”enables News Corp. to further simplify to drive long-term stockholder value and increase focus on key growth pillars,”
Notably, Telstra, which owns a 35% stake in Foxtel, will also sell its share. It will have its $80 million in shareholder loans repaid and retain a smaller 3% equity stake in DAZN.
Currently, Foxtel is 65% owned by News Corp and 35% by Telstra. The deal marks a significant shift for the Australian media landscape, as DAZN plans to expand its presence in the region.
Foxtel CEO Patrick Delany said, “News Corp.’s unwavering support and guidance has seen Foxtel successfully reinvent itself into a dynamic, streaming-led business delivering strong financial performance,” and added, “DAZN’s backing will enhance our strategy needed, provide access to their global reach, and strengthen the infrastructure and technology to accelerate our transformation. Most importantly, we will continue to be a proudly Australian-based business, led by local management, committed to delivering locally produced sports and entertainment content for our audiences.”
Additionally, Foxtel, led by CEO Patrick Delany and his existing team, will continue its operations as usual. With 4.7 million subscribers, Foxtel operates across subscription television, streaming services, sports production, and advertising.
DAZN CEO Shay Segev said, “Australians watch more sport than any other country in the world, which makes this deal an incredibly exciting opportunity for DAZN to enter a key market, marking another step in our long-term strategy to become the global home of sport.”
For DAZN, which already reaches 300 million viewers across 200 markets and more than 90,000 live events annually, the acquisition is part of its strategy to enter new markets and broaden its sports coverage. The platform currently offers content ranging from European football and women’s sports to boxing, MMA, and the NFL.