DAZN acquires Australia's Foxtel for US$2.2bn - SportsPro

Sports streaming subscription service DAZN has acquired Australian pay-TV giant Foxtel from mass media company News Corp and telco Telstra in a deal worth AUS$3.4 billion (US$2.2 billion).

Under the terms of the agreement, News Corp will hold a six per cent stake in DAZN and a seat on its board of directors, while Telstra will receive a three per cent share in the streaming platform after selling its 35 per cent minority stake in Foxtel.

The deal will also see Foxtel repay outstanding shareholder loans of AUS$578 million (US$361 million) to News Corp and AUS$128 million (US$80 million) to Telstra, with the company’s current debt to be refinanced at closing.

News Corp said in a statement that the AUS$3.4 billion valuation of Foxtel is seven times its 2024 earnings before interest, tax, depreciation and amortisation (Ebitda).

The transaction is expected to close in the second half of fiscal 2025, subject to regulatory approvals and other closing conditions, after which current Foxtel chief executive Patrick Delaney will continue to lead the company.

News Corp first confirmed it was exploring options for Foxtel back in August before DAZN emerged as a potential suitor for the business in November.

Established in 1995, Foxtel operates cable channels such as Fox Sports but in recent years has launched the Kayo, Binge and Hubbl streaming services in an effort to fend off competition for subscribers from more affordable platforms like Netflix. At the end of June, the company boasted 4.7 million subscribers across its platforms.

Robert Thomson, News Corp chief executive, described the Foxtel sale as “a victory” for the company’s 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.”

DAZN, which is backed by Ukranian-born billionaire Len Blavatnik and headquartered in London, already offers some sports in Australia on its global platform, such as the National Football League (NFL) and boxing.

However, the acquisition of Foxtel will see it take on some key sports contracts in the market, including domestic rights for the Australian Football League (AFL) and National Rugby League (NRL), the latter of which is up for renewal in 2027. 

Foxtel’s sports rights portfolio also includes domestic coverage of all international and domestic cricket played on Australian soil, as well as Formula One, the PGA Tour and all four golf majors.  

“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,” added DAZN chief executive Shay Segev.

“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.”