News Corp Offloads Foxtel to DAZN in Major $2 Billion Deal
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News corporation, the media empire controlled by Rupert Murdoch, has announced the sale of its Australian cable television arm, Foxtel, to the global sports streaming service DAZN. The deal, valued at $2 billion (AUD 3.4 billion) including debt, signifies a major strategic shift for News Corp and a significant entry into the Australian market for DAZN.
The sale includes a 6% stake in DAZN for News Corp, along with a seat on the DAZN board. This strategic investment allows News Corp to maintain some involvement in the future of the platform while divesting from a sector increasingly challenged by streaming services.
DAZN, backed by Ukrainian-born billionaire Len Blavatnik, is a major player in international sports broadcasting, holding rights to major leagues like Italy’s Serie A and Spain’s LaLiga. “Australians watch more sport than any other country in the world, which makes this deal an incredibly exciting possibility for DAZN to enter a key market, marking another step in our long-term strategy to become the global home of sport,” said DAZN co-founder and CEO Shay Segev.
Foxtel,launched in 1995,has struggled in recent years as consumers increasingly opt for cheaper streaming alternatives like Netflix. While Foxtel attempted to diversify with its own streaming services, such as Kayo Sports (which streams AFL and NRL games), the rising cost of broadcasting rights and declining subscriber revenue ultimately led to the sale.
Independent telco analyst Paul Budde commented on the deal’s implications: “foxtel’s traditional premium pricing model has long been a point of contention, particularly in an era dominated by more affordable streaming alternatives. DAZN’s entry into the australian market, potentially offering competitive or lower rates, could dramatically shift consumer expectations and reshape the pricing landscape.”
The acquisition has significant implications for the Australian sports broadcasting landscape. existing deals, such as the AFL’s seven-year, A$4.5 billion contract with Foxtel and Channel Seven (running until 2031), and Cricket Australia’s A$1.5 billion deal with the same partners, will likely be impacted by DAZN’s entry. Tennis rights, including the Australian Open, are currently held by Nine Entertainment until 2029.
This sale represents a significant turning point for both News Corp and the future of sports broadcasting in Australia. The impact on consumers, particularly regarding pricing and content availability, remains to be seen, but the deal undoubtedly signals a major shift in the Australian media landscape.
News Corp Sells Foxtel Stake to DAZN in Multi-billion Dollar Deal
In a significant shakeup of the Australian media landscape,News Corp is selling its controlling interest in Foxtel,the country’s leading pay-TV provider,to global sports streaming service DAZN. The deal, valued at a multiple of Foxtel’s 2024 earnings, marks a strategic shift for News Corp, allowing it to concentrate on its core publishing and digital real estate assets.
the transaction, announced earlier this week, sees DAZN acquire News Corp’s 61.4% stake in Foxtel.The valuation represents a significant premium, reaching seven times Foxtel’s 2024 earnings before interest, taxes, depreciation, and amortization (EBITDA), according to a News Corp statement. “The valuation on Foxtel represents seven times its 2024 earnings before interest, tax, depreciation and amortisation (EBITDA),” the statement confirmed.
As part of the agreement, outstanding shareholder loans totaling A$578 million (approximately $361 million USD) will be repaid in full, and Foxtel’s existing debt will be refinanced upon closing. The deal is expected to finalize in the latter half of 2025, pending regulatory approval from Australia’s Foreign Investment Review Board (FIRB), given DAZN’s international ownership.
News Corp CEO Robert Thomson explained the rationale behind the sale, stating that the move will enable the company to focus on its core businesses.”The deal would allow the company to focus on its core operations of Dow Jones, digital real estate and book publishing,” Thomson said. News Corp’s portfolio includes a significant stake in REA Group, a leading online real estate platform, and HarperCollins Publishers.
The sale also involves Australian telecommunications giant Telstra, which is divesting its 35% stake in Foxtel to DAZN. In return, Telstra will receive A$128 million (roughly $80 million USD) in cash and a 3% equity stake in DAZN. The deal’s impact on the australian media market is expected to be substantial, with analysts already speculating on the future direction of Foxtel under DAZN’s ownership.
DAZN’s acquisition is led by Len Blavatnik, a prominent investor with dual U.S. and British citizenship and founder of Access Industries, a company boasting an investment portfolio exceeding $35 billion. While the Australian Treasury, which oversees the FIRB, declined to comment on specific cases, the deal’s approval is crucial for its completion.
news Corp’s stock experienced a positive market reaction following the declaration, with shares climbing 3.5% to A$50.79 on Monday, outperforming the broader market’s 1.6% increase. Telstra’s shares also saw a modest gain of 1.1%.
This transaction highlights the ongoing consolidation and conversion within the global media and entertainment industries, with streaming services increasingly playing a dominant role. The long-term implications for Australian viewers and the competitive landscape remain to be seen.
News corp Sells Foxtel Stake to DAZN: A New Era for Australian Sports Broadcasting?
This week, News Corp sent shockwaves through the Australian media industry by announcing the sale of its controlling stake in Foxtel, the country’s leading pay-TV provider, to global sports streaming giant DAZN.
This multi-billion dollar deal marks a major strategic shift for News Corp, allowing them to focus on their core publishing and digital real estate assets.
For DAZN, this acquisition is a huge leap into one of the world’s most sports-obsessed nations.
We spoke with Dr.Emily Carter, a leading media analyst specializing in the Australian market, to unpack the implications of this seismic event.
Why is News Corp Selling Foxtel?
Dr. Carter: “The writing’s been on the wall for some time. While Foxtel remains a important player in the Australian market, its conventional model has been struggling against the rapidly growing popularity of streaming services like Netflix and Stan.
These platforms offer more flexible viewing options and often at a lower cost, which has chipped away at Foxtel’s subscriber base.
News Corp has likely recognized this trend and decided to divest from a sector facing increasing headwinds.”
What does this mean for DAZN and the Australian Market?
Dr. Carter:
“This is a major win for DAZN. They are a global force in sports streaming, holding rights to top leagues like Italy’s Serie A and Spain’s La Liga.
Entering the Australian market gives them access to a fiercely passionate sports audience.
However, they face a competitive landscape. Existing players like Stan Sport and Kayo Sports are already offering compelling streaming packages focusing on Australian sports.
DAZN will need a strong content strategy and competitive pricing to carve out a significant share of the market.
What Happens to Existing Broadcasting Deals?
Dr. Carter: “That’s the million-dollar question, isn’t it? Current deals like Foxtel’s AFL and Cricket Australia contracts will undoubtedly be impacted by DAZN’s entry.
We could see bidding wars for exclusive rights,potentially driving up costs.
The outcome for consumers will depend on how DAZN chooses to position itself. Will they seek to capture the broadest audience with a general sports offering,or focus on niche sports and offer more targeted packages?”
Is This the End of Pay-TV in Australia?
Dr. Carter: ”It’s too early to say definitively. While this deal signals a major shift towards streaming, traditional pay-TV still holds a significant audience share, especially for live sports.
Foxtel,
under new ownership, will likely adapt its strategy and focus on delivering premium content and experiences that differentiate them from streaming competitors.
This is shaping up to be a engaging period of evolution for the Australian media landscape.”
