Foxtel sale inches closer as potential buyer taps Bank of America
UK-based sports streaming platform, DAZN, has tapped the Bank of America as an advisor, as it looks to buy News Corp’s majority stake in Foxtel.
This is according to the AFR, which reports the streamer “is working with BofA’s telecommunications and media team on a potential deal” for News Corp’s 65% share in the subscription TV company, although the publication notes that no deal is guaranteed.
DAZN launched in 2015 and is owned by Access Industries, an investment group founded by billionaire Sir Len Blavatnik. The sports streamer boasts 20 million subscribers across 200 countries – with the rights to over 75 different sporting competitions.
DAZN
News Corp’s CEO Robert Thomson first signaled “third-party interest in a potential transaction involving the Foxtel Group” during the company’s fourth-quarter results in August, telling investors “we are evaluating options for the business with our advisors in light of that external interest”.
Telstra, which owns the remaining 35% stake in Foxtel, backed the potential sale at its AGM in October, with chairman Craig Dunn calling it “a sensible move or decision to make on behalf of shareholders”, noting “from time to time the importance of certain assets and their contribution to the value proposition we make to our customers does change”.
Telstra CEO, Vicki Brady, backed up this sentiment during a later investment call with reporters, saying “if it got to the stage where there was an offer for Foxtel at the right level of value, then yes, we would be supportive of that with News Corp”.
Julian Ogrin, the chief of Foxtel’s streaming and advertising division, told Mumbrella in August the decision to sell is “one for the shareholders”.
“All that is really for them to decide,” he said. “[News Corp] are very committed to the Foxtel Group and where our performance is. What they decide is really is in their hands.
“Us as management, we’re just going to continue on and provide the great service that we’re providing and the growth that we’ve been seeing.”
Last month, News Corp confirmed the talks were still ongoing, noting in its quarterly results: “In response to third party interest, the Company is continuing to assess strategic and financial options for the Foxtel Group, including its capital structure and assets.”
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