News Corp confirms Foxtel sale
After weeks of speculation, News Corp has confirmed the sale of Foxtel Group to UK-based sports streaming platform, DAZN.
Announced on Monday, the $3.4 billion deal will be finalised in the second half of 2025, and will see News Corp hold a minority equity interest in DAZN of approximately 6%, as well as one seat on its Board of Directors.
Under News Corp’s management, Foxtel strengthened itself as a digital and streaming leader in sports and entertainment. With DAZN’s global reach, technology, and broad content portfolio, the proposed transaction is described to bolster Foxtel’s position even more.
“News Corp’s unwavering support and guidance has seen Foxtel successfully reinvent itself into a dynamic, streaming-led business delivering strong financial performance,” Patrick Delany, Foxtel Group CEO said.
“We are excited to embark on the next chapter with DAZN, a premier global sports streaming provider, as our new shareholder. 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 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. The Foxtel purchase would also benefit the global media giant, acting as a pain-free way for it to bolster its offering with AFL, NRL, and international cricket rights.
“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. 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,” said Shay Segev, chief executive officer of DAZN.
“We are committed to supporting and investing in Foxtel’s television and streaming services, across both sports and entertainment, using our world-leading technology to further enhance the viewing experience for customers. We are also committed to using our global reach to export Australia’s most popular sports to new markets around the world, and we will continue to promote women’s and under-represented sports.
“We’re looking forward to working closely with Patrick Delany and his team, as well as News Corp and Telstra as shareholders in DAZN, to realise our ambitious vision for the future of sport entertainment.”
Meanwhile, for News Corp, the deal will allow it to focus on its “key growth segments”.
“This agreement is a victory for News Corp shareholders, DAZN, and sport fans in Australia and around the world,” said News Corp’s chief executive officer, Robert Thomson.
“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. We are proud to be a long-term partner of DAZN and its talented team.”
Telstra, which owns the remaining 35% stake in Foxtel, backed any potential sale at its annual general meeting 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 will sell its share of Foxtel, and instead take a minority stake in DAZN of approximately 3%.
The transaction, which is expected to close in the second half of fiscal 2025, is subject to regulatory approvals and other customary closing conditions. For News Corp financial reporting purposes, Foxtel will be classified as discontinued operations as of the second quarter of fiscal 2025.
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Lauren McNamara is the associate editor at Mumbrella, covering the agency beat. She joined in November 2022 as editorial assistant, after completing a Bachelor of Communications (Journalism) at UTS.
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topics
acquisition
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Patrick Delany
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Shay Segev
sports
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Gobsmacking deal. I wouldn’t buy Foxtel even if I had that much money loose down the back of my lounge. DAZN must have some very particular plans for it because, as a straight business play, I reckon it’s a dog with fleas.
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