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Key Takeaways
- News Corp and Australian partner Telstra sold their interest in the Foxtel subscription TV and streaming service to DAZN Group for an enterprise value of 3.4 billion Australian dollars ($2.12 billion).
- The agreement includes the repayment of $360 million in shareholder loans owed to News Corp.
- News Corp will also get a 6% stake in DAZN Group, and a seat on the board.
News Corp (NWSA) shares gained Monday when Rupert Murdoch’s media company and Australian telecom company Telstra agreed to sell their interest in subscription TV and streaming service Foxtel to sports streaming service DAZN Group for an enterprise value of 3.4 billion Australian dollars ($2.12 billion).
News Corp said as part of the agreement, A$578 million ($360 million) in shareholder loans owed to the company would be repaid in full, and it will get a 6% stake in London-based DAZN, as well as a seat on the board.
The company explained that the decision came following “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.”
News Corp Chief Executive Officer (CEO) Robert Thomson added that the transaction allows the company “to focus on our other growth pillars of Dow Jones, Digital Real Estate and Book Publishing, while benefiting from repayment of our shareholder loans and an improved credit profile.”
Shares of News Corp, which edged higher in recent trading, are up about 14% year-to-date.
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