Potential Foxtel buyer revealed
A London-based sports streamer is reportedly in talks with News Corp to buy its 65% stake in Foxtel.
According to the AFR, which cites “two people with detailed knowledge of the Foxtel discussions, who spoke on condition of anonymity”, the UK sports streaming platform, DAZN, is looking to buy the network, mostly due to Foxtel’s impressive suite of sporting broadcast rights, and its Kayo Sports platform.
DAZN launched in 2015 and is owned by Access Industries, an investment group founded by billionaire Sir Len Blavatnik. It is a giant in the global sports streaming world, with over 20 million subscribers across 200 countries – with the rights to over 75 different sporting competitions.
In the US, DAZN is available as an Amazon Prime channel.
DAZN is after Kayo Sports
News Corp’s CEO Robert Thomson first signalled the “third-party interest in a potential transaction involving the Foxtel Group” during the company’s fourth-quarter results in August.
“We are evaluating options for the business with our advisors in light of that external interest,” he said.
Telstra, who owns the remaining 35% stake in Foxtel, backed the potential sale at its AGM in October, after News Corp reportedly fielded a takeover offer from US-based firm Platinum Equity.
The telco’s chairman Craig Dunn called it “a sensible move or decision to make on behalf of shareholders”, pointing out that “from time to time the importance of certain assets and their contribution to the value proposition we make to our customers does change”.
Tesltra CEO, Vicki Brady, said likewise during an investment call with reporters: “From our point of view, 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.”
Earlier this month, News Corp’s first quarter earnings noted: “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. There is no assurance regarding the timing of any action or transaction, nor that the strategic review will result in a transaction or other strategic change.”
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.”
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Nathan Jolly is the Features Editor at Mumbrella. He joined the team in July, 2023.
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