Rupert Murdoch’s News Corp (NWSA) has agreed to sell its Foxtel Group to sports streaming platform DAZN Group Ltd. in a transaction valuing the Australian pay-television and streaming
service at A$3.4 billion ($2.1 billion).
The agreement, announced Monday, provides clarity on the future of Foxtel, a business whose trajectory had appeared uncertain for years. After dominating Australia’s pay-TV market since the late 1990s, Foxtel faced intense competition from newer streaming platforms such as Netflix Inc. (NFLX). However, the company regained relevance by launching its own streaming services, including Kayo Sports and Binge.
Under the deal's terms, News Corp will retain a 6% stake in DAZN and secure a seat on the company's board. Additionally, shareholder loans of A$578 million owed to News Corp will be repaid in cash. Telstra Group Ltd., a minority stakeholder in Foxtel, will also divest its shares and hold a 3% interest in DAZN.
News Corp’s Australian-listed shares rose by 3.3% to A$50.66 following the announcement.
DAZN, backed by billionaire Len Blavatnik, is a major player in live sports broadcasting. The platform holds multi-year rights for events such as football and Formula One racing in European markets. Since its launch in 2016, DAZN has secured high-profile contracts, including the main broadcasting rights for France’s Ligue 1 and National Football League games outside the U.S.
Blavatnik, whose net worth is estimated at $39.4 billion, ranks 39th on the Bloomberg Billionaires Index.
The Foxtel transaction is anticipated to close in the second half of fiscal 2025. Photo by Monika Flueckiger, World Economic Forum, Wikimedia commons.