News Corp. and Australian telecom company Telstra have struck a deal to sell Australian media company Foxtel Group to sports streaming platform DAZN for a deal worth about $2.1 billion.
Under the terms of the agreement, outstanding shareholder loans totaling $361 million to News Corporation will be repaid in full in cash upon closing. Foxtel’s current debt will be refinanced upon closing and transfer of the Foxtel transaction, and News Corp. will retain an approximately 6% minority interest in DAZN and one seat on the board of directors.
Telstra Group Ltd. also plans to sell its minority stake in Foxtel, repay an $80 million shareholder loan and acquire a minority stake of about 3% in DAZN. Foxtel Group is 65% owned by News Corp. and 35% owned by Telstra.
In announcing the deal, News Corp said the deal would “give Australian sport international exposure, while giving Australian sports fans greater access to programming from around the world.”
The deal also allows News Corporation to “further simplify long-term shareholder value growth and increase focus on key growth pillars,” the company said. It follows a strategic and financial review of Foxtel as part of the Corporation.” It’s an ongoing effort to optimize our portfolio and simplify our company structure. ”
News Corp. CEO Robert Thomson said: “This deal is a win for News Corp. shareholders, DAZN and sports fans in Australia and around the world.” “Foxtel is transforming into a true digital and streaming leader in Australia, and we believe DAZN is the right owner to take the business to the next level with its technology, global reach and attractive sports rights. The transaction will allow News Corp. to benefit from shareholder loan repayments and an improved credit profile while focusing on other growth pillars: Dow Jones, digital real estate and book publishing. ”
Foxtel will continue to be led by CEO Patrick Delany and his current team. Foxtel has 4.7 million subscribers and its businesses include subscription television, streaming, sports production and advertising.
“Thanks to News Corp.’s unwavering support and guidance, Foxtel has successfully transformed into a dynamic streaming-driven business and achieved strong financial performance,” Delaney said, adding, “DAZN’s The support will strengthen the necessary strategies and provide access to global reach.” , strengthen infrastructure and technology to accelerate transformation. Most importantly, we remain a proudly Australian-based company, led by a local management team and committed to providing our viewers with locally produced sports and entertainment content. It’s about making an effort. ”
DAZN says it has 300 million viewers in 200 markets and streams more than 90,000 live events each year. The company plans to pursue new markets and add more sports to its programming, which already includes European soccer, women’s soccer, boxing, mixed martial arts and internationally, the NFL.
DAZN CEO Hsieh said: “Australians watch more sports than any other country in the world, so this deal is a very exciting opportunity for DAZN to enter a key market and expand the global reach of sports. “This is another step in our long-term strategy to become our home base.” Segev said. “Foxtel is a successful company that has undergone significant digital transformation in recent years, and we are confident that our global reach and relentless pursuit of innovation will continue to drive our business forward and ensure our long-term success. I’m sure it will.”
The transaction is expected to close in the second half of fiscal 2025 and is subject to regulatory approvals and other customary closing conditions.
