News Corp. and Australian telecom film Telstra have struck a deal to sell Aussie media company Foxtel Group to sports streaming platform DAZN in a deal worth about $2.1 billion.
Under the terms of the agreement, shareholder loans in the amount of $361 million outstanding and owing to News Corp. will be repaid in full in cash at closing. Foxtel’s current debt will be refinanced at closing and transfer with Foxtel, and News Corp. will hold a minority equity interest in DAZN of about 6 percent as well as one seat on its board of directors.
Telstra Group Ltd. will also sell its minority interest in Foxtel, have its shareholder loans of $80 million repaid and take a minority stake in DAZN of about 3 percent. The Foxtel Group is owned 65 percent by News Corp. and 35 percent by Telstra.
The deal gives “international exposure to Australian sport, while bringing Australian sports fans greater access to programming from across the globe,” News Corp. said in announcing the deal.
The deal also “enables News Corp. to further simplify to drive long-term stockholder value and increase focus on key growth pillars,” the company said, adding: “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.”
“This agreement is a victory for News Corp. shareholders, DAZN, and sport fans in Australia and around the world,” News Corp. CEO Robert Thomson said. “Foxtel has been transformed into a genuine digital and streaming leader in Australia, and we believe DAZN is the right owner to take the business to the next level with their technological capabilities, global footprint and compelling sports rights. This transaction also allows News Corp. 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.”
Foxtel will continue to be led by CEO Patrick Delany and his current team. Foxtel has 4.7 million subscribers, with businesses including subscription television, streaming, sports production and advertising.
“News Corp.’s unwavering support and guidance has seen Foxtel successfully reinvent itself into a dynamic, streaming-led business delivering strong financial performance,” Delany said, adding: “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.”
DAZN says it has 300 million viewers across 200 markets and streams more than 90,000 live events every year. It plans to pursue new markets and add more sports to its programming mix, which already includes European football, women’s football, boxing and MMA and the NFL internationally.
“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,” DAZN CEO Shay Segev said. “Foxtel is a successful business that has undergone a remarkable digital transformation in recent years, and we are confident that our global reach and relentless pursuit of innovation will continue to drive the business forward and ensure long-term success.”
The deal, which is expected to close in the second half of fiscal 2025, is subject to regulatory approvals and other customary closing conditions.
