News Corp and Australian telecom giant Telstra have reached an agreement to sell their joint media venture, Foxtel Group, to global sports streaming platform DAZN in a transaction valued at approximately $2.1 billion.
Key Details of the Agreement
Under the terms of the deal:
- News Corp, which owns 65% of Foxtel, will have its $361 million in shareholder loans repaid in cash upon closing.
- Telstra, holding a 35% stake, will also have its $80 million shareholder loans repaid.
- Both companies will receive minority equity stakes in DAZN, with News Corp holding about 6% and Telstra about 3%.
- Foxtel’s existing debt will be refinanced and transferred along with the company.
The agreement also grants News Corp one seat on DAZN’s board of directors.
Expanding Reach for Australian Sports
The deal positions DAZN to bring Australian sports to a global audience while offering Australian fans access to a broader range of international programming. News Corp emphasized that this move aligns with its strategy to simplify its operations and focus on key growth areas like Dow Jones, Digital Real Estate, and Book Publishing.
“This agreement is a win for News Corp shareholders, DAZN, and sports fans both in Australia and worldwide,” said News Corp CEO Robert Thomson. He praised Foxtel’s transformation into a digital and streaming leader and expressed confidence in DAZN’s ability to propel the business forward with its global footprint and technological expertise.
Foxtel’s Continued Leadership
Foxtel, which boasts 4.7 million subscribers across its subscription TV, streaming, sports production, and advertising services, will remain under the leadership of CEO Patrick Delany and his team. Delany highlighted Foxtel’s evolution into a dynamic streaming-driven company, crediting News Corp for its support.
“DAZN’s backing will enhance our strategy, provide global reach, and strengthen our technology infrastructure to accelerate our transformation,” Delany said, emphasizing Foxtel’s commitment to producing Australian sports and entertainment content.
DAZN’s Global Expansion
DAZN, which serves 300 million viewers across 200 markets and streams over 90,000 live events annually, views this acquisition as a strategic move into a key market. Its programming already includes European football, women’s sports, boxing, MMA, and the NFL internationally.
“Australia’s love for sports makes this deal an exciting opportunity for DAZN,” said CEO Shay Segev. “Foxtel has undergone a remarkable digital transformation, and we are eager to combine our global reach and innovative approach to drive its future success.”
Timeline and Regulatory Approvals
The transaction is expected to close in the second half of fiscal 2025, pending regulatory approvals and other standard conditions.
This deal marks a significant milestone for Foxtel and a major step in DAZN’s mission to become the global home of sports.