News Corp to sell Foxtel to DAZN for A$3.4b

Australia – News Corp has announced that it is selling Foxtel to sports entertainment platform DAZN for an enterprise value of A$3.4b (US$2.12b), aimed at giving international exposure to Australian sport, while bringing Australian sports fans greater access to programming from across the globe.

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.

The proposed deal enables News Corp to sharpen its focus on core growth areas: Dow Jones, Digital Real Estate Services, and Book Publishing. Additionally, it grants the company an ownership stake in a larger global sports streaming and entertainment business, DAZN, which boasts over 300 million viewers across 200 markets. DAZN continues to grow rapidly as it expands into new regions and diversifies its sports offerings.

The transaction is anticipated to finalize in the latter half of fiscal 2025, pending regulatory approvals and standard closing conditions. Starting in the second quarter of fiscal 2025, News Corp will classify Foxtel as discontinued operations for financial reporting purposes.

Under the agreement, shareholder loans totaling A$578m (US$374m) owed to News Corp will be fully repaid in cash at the time of closing. Foxtel’s existing debt will be refinanced and transferred with the company upon completion of the transaction. In exchange, News Corp will receive a minority equity stake of approximately 6% in DAZN and gain a seat on its Board of Directors.

Telstra will also divest its minority interest in Foxtel, have its shareholder loans of A$128m (US$83m) repaid, and acquire a minority stake of about 3% in DAZN.

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

He added, “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.”

Meanwhile, Shay Segev, chief executive officer at DAZN, commented, “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.”

He added, “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.”

Lastly, Patrick Delany, group CEO at Foxtel, said, “News Corp’s unwavering support and guidance has seen Foxtel successfully reinvent itself into a dynamic, streaming-led business delivering strong financial performance. We are excited to embark on the next chapter with DAZN, a premier global sports streaming provider, as our new shareholder.”

He added, “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.”