News Corp., the media conglomerate founded by Rupert Murdoch, has reached an agreement to sell its Australian pay-television and streaming service, Foxtel Group, to the global sports platform DAZN Group Ltd. The deal values Foxtel at A$3.4 billion, equivalent to approximately US$2.1 billion. This acquisition marks a significant shift in the Australian media landscape and solidifies DAZN’s position as a major player in the global sports broadcasting arena.
This strategic move resolves the uncertain future of Foxtel, a business that had faced challenges in recent years due to the rise of streaming competitors like Netflix. After dominating the Australian pay-TV market for decades, Foxtel experienced a decline in subscribers as consumers increasingly opted for on-demand streaming services. However, Foxtel successfully adapted by launching its own streaming platforms, including Kayo Sports and Binge, which helped revitalize its business and attract a new generation of viewers.
The transaction details outline that News Corp. will retain a 6% stake in DAZN and hold a seat on the board of directors. Furthermore, outstanding shareholder loans amounting to A$578 million will be repaid to News Corp. in cash. Telstra Group Ltd., a minority shareholder in Foxtel, will also divest its stake and acquire approximately 3% ownership in DAZN. Following the announcement, News Corp.’s Australian-listed shares experienced a notable increase, closing at A$50.66, a rise of 3.3%.
DAZN, financially backed by billionaire Len Blavatnik, has established a prominent presence in the live sports broadcasting industry. The platform holds extensive multi-year rights for major sporting events, including football (soccer) and Formula One racing, across various European markets. Since its inception in 2016, DAZN has secured significant broadcasting deals, such as the primary rights for Ligue 1, the top French professional football league. Additionally, DAZN broadcasts National Football League (NFL) games to audiences outside the United States, further expanding its global reach. Blavatnik’s substantial net worth, estimated at $39.4 billion, positions him as a significant figure in the global business landscape.
The acquisition of Foxtel by DAZN is anticipated to conclude in the second half of the fiscal year 2025. This transaction signifies a major development in the media and sports broadcasting sectors, with potential implications for both the Australian and international markets. It underscores the ongoing evolution of content consumption and the increasing dominance of streaming platforms in the entertainment industry.
