News Corp sells Foxtel to DAZN in landmark A$3.4 billion deal

Foxtel

‘This deal is an incredibly exciting opportunity for DAZN to enter a key market and marks another step in our strategy to become the global home of sport.’

News Corp has agreed to sell its majority stake in the Foxtel Group to global sports streaming leader DAZN Group Limited for an enterprise value of A$3.4 billion. The transaction marks a transformative moment in Australian media, positioning Foxtel as a global player in sports streaming while enabling News Corp to streamline its focus on core growth areas.

Foxtel, under the leadership of CEO Patrick Delany, has evolved into a digital and streaming powerhouse, redefining sports and entertainment consumption in Australia. The deal will integrate Foxtel into DAZN’s extensive portfolio, providing Australian sports fans unparalleled access to global sports programming and exporting Australian sports to international audiences.

“This agreement is a victory for News Corp shareholders, DAZN, and sport fans in Australia and around the world,” said News Corp chief executive 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.”

DAZN CEO Shay Segev echoed the enthusiasm, highlighting Australia’s passion for sport as a key driver for the acquisition. “Australians watch more sport than any other country in the world. This deal is an incredibly exciting opportunity for DAZN to enter a key market and marks another step in our strategy to become the global home of sport.”

Key details of the deal

• Valuation: Foxtel’s enterprise value of A$3.4 billion represents more than 7x its Fiscal 2024 EBITDA.

• Shareholder Loans: News Corp and Telstra Group Ltd will receive full repayment of their shareholder loans, totalling A$706 million, at closing.

• Equity Stake: News Corp and Telstra will retain minority stakes in DAZN, at approximately 6% and 3% respectively, with News Corp gaining a seat on DAZN’s board of directors.

• Leadership Continuity: Patrick Delany and his management team will remain at the helm of Foxtel, ensuring continuity and furthering its transformation as a streaming-first business.

• Local Commitment: Foxtel will maintain its head office in Artarmon, led by its Australian-based management team, ensuring a strong local presence to oversee its key brands—Foxtel, Kayo, BINGE, and Hubbl.

The transaction is expected to close in the second half of fiscal 2025, subject to regulatory approvals and customary closing conditions.

Strategic realignment for News Corp

For News Corp, the deal represents an opportunity to simplify its portfolio and enhance shareholder value. The company will refocus on its growth pillars: Dow Jones, Digital Real Estate Services, and Book Publishing.

The transaction also bolsters News Corp’s financial position by repaying loans, reducing debt, and improving credit metrics. “This transaction allows News Corp to focus on our other growth pillars while benefiting from repayment of our shareholder loans and an improved credit profile,” added Thomson.

DAZN’s vision for Foxtel

DAZN’s plans for Foxtel include leveraging its cutting-edge technology and international reach to enhance the platform’s offerings. Segev underscored the company’s commitment to supporting Australian sports and entertainment content, promoting underrepresented sports, and investing in women’s sports.

Foxtel’s chairman Siobhan McKenna described the acquisition as a testament to Foxtel’s remarkable transformation over the past seven years, noting, “This agreement with DAZN is international recognition of the transformation of Foxtel from an incumbent pay TV operator to a sports and entertainment digital and streaming leader.”

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