Sports streaming platform DAZN has acquired Australian broadband company Foxtel Group from majority shareholder, Rupert Murdoph’s News Corp, and minority shareholder, Telstra, in a deal valued at $2.2 billion.
The acquisition, pending regulatory approval and estimated for completion during the second half of fiscal 2025, establishes the sports entertainment platform as a leader in its domain in the Australian market, additionally enhancing its global reach and footprint. Per the press release from DAZN, the addition of Foxtel brings the group’s pro-forma revenues toward $6 billion and provides further content, expertise and expansion opportunities for its growth trajectory.
Foxtel is one of Australia’s leading media companies, with 4.7 million subscribers, who will gain access to DAZN’s portfolio of sports content. From its beginnings as Australia’s original pay television company, Foxtel has evolved to become a digital and streaming leader in sports and entertainment; the proposed transaction thus cements Foxtel as a digital-first, streaming-focused business. Led by CEO Patrick Delany, the company will “maintain its local character,” as well as its current management team.
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DAZN aims to grow the global audience for domestic Australian sports across the 200 territories in which it is available. Under the terms of the deal, News Corp and Telstra (Australia’s largest mobile network) will become minority shareholders in DAZN, enabling them to retain an interest in Foxtel. News Corp’s minority equity interest is approximately 6%, and the company will retain one seat on its Board of Directors. Meanwhile, Telstra’s stake in DAZN is approximately 3%.
Per News Corp’s announcement, shareholder loans in the amount of A$578 million outstanding and owing to News Corp will be repaid in full in cash at closing. Foxtel’s current debt will be refinanced at closing and transfer with Foxtel. Telstra will also have its shareholder loans of A$128 million repaid.
Below are the statements from the executives, in full:
Shay Segev, Chief Executive Officer of DAZN, said:
“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.
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.”
Siobhan McKenna, the Chairman of Foxtel, said:
“Over the last seven years the Foxtel team, with the strong support of News, have achieved an extraordinary turnaround in an intensely competitive environment.”
Foxtel Group CEO, Patrick Delany, said:
“Today’s announcement is a natural evolution for the Foxtel Group, having reinvented the company over the past five years as Australia’s most dynamic technology-led streaming company.
Kayo and Foxtel provide Australian sports fans with access to the best Australian and international sport and shows, including AFL, NRL and Cricket with 4.7 million subscribers.
We are excited by DAZN’s commitment to the Australian market. They are experts in the sports media business and can play a significant role in supporting Foxtel as the business grows its streaming capabilities, bringing a bigger and better service to customers across entertainment, news and sport. They are a perfect match for us as we look toward this next era of growth.
We have been grateful for the support of News Corp while we reimagined the future of Foxtel. In 2019, when we merged Foxtel and Fox Sports we had many people questioning our future.
After launching Kayo later in 2019 and BINGE in 2020, today we are the largest Australian-based streamer of sport and entertainment, we have stabilised our Foxtel base and launched Hubbl to help consumers find all the streamed content they love all in one place. This wouldn’t have been possible without the support and encouragement of News Corp.”
News Corp chief executive, Robert Thomson, 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. 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.”