Sports streaming company DAZN is buying Australia’s Foxtel Group from majority shareholder News Corp and minority shareholder Telstra in a deal with an enterprise value of $2.2 billion.
The deal, which is subject to regulatory approval, will bring together Foxtel — Australia’s original pay-TV operator, with 4.7 million subscribers — with DAZN, the privately held global streamer owned by British billionaire Len Blavatnik. The Foxtel Group’s business includes sports production company Fox Sports and is the home of local and global entertainment content in Australia.
Rupert Murdoch’s News Corp said the agreement with DAZN follows a strategic and financial review of Foxtel “as part of News Corp’s ongoing efforts to optimize its portfolio and simplify the structure of the company.” Under the terms of the transaction, News Corp and Telstra will become minority shareholders in DAZN, enabling them to retain an interest in Foxtel. The deal is expected to close by mid-2025, subject to regulatory approvals and other customary closing conditions.
Related Stories
Foxtel will “maintain its local character” and will continue to be led by CEO Patrick Delany and the current management team, DAZN said. DAZN, founded in 2016, has more than 3,000 employees and says it generated $3.2 billion in revenue in 2023. The addition of Foxtel to DAZN will bring the combined company’s pro-forma revenues toward $6 billion.
Popular on Variety
The acquisition “establishes DAZN as a leader in sports entertainment in Australia” while also expanding DAZN’s global footprint, DAZN said.
“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,” DAZN CEO Shay Segev said in a statement. “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.”
Foxtel’s Delany said in a statement, “News Corp’s unwavering support and guidance has seen Foxtel successfully reinvent itself into a dynamic, streaming-led business delivering strong financial performance. We are excited to embark on the next chapter with DAZN, a premier global sports streaming provider, as our new shareholder. DAZN’s backing will enhance our strategy needed, provide access to their global reach, and strengthen the infrastructure and technology to accelerate our transformation. Most importantly, we will continue to be a proudly Australian-based business, led by local management, committed to delivering locally-produced sports and entertainment content for our audiences.”
News Corp CEO Robert Thomson said the sale of Foxtel to DAZN will let News Corp “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.”
Under the terms of the agreement, shareholder loans in the amount of $361 million ($578 million Australian) outstanding and owing to News Corp will be “repaid in full in cash at closing,” according to News Corp. Foxtel’s current debt will be refinanced at closing and transfer with Foxtel, and News Corp will hold a minority equity interest in DAZN of approximately 6% as well as one seat on its board. Telstra Group will have its shareholder loans of $80 million ($128 million Australian) repaid, and take a minority stake in DAZN of approximately 3%.
DAZN (pronounced “da-ZONE”) streams over 90,000 live events annually and is available in more than 200 markets worldwide. DAZN is the home of European football, women’s football, boxing and MMA, and the NFL internationally. The platform features sports and leagues from around the world including Bundesliga, Serie A, LALIGA, Ligue 1, Formula 1, NBA, Moto GP, and others including the 2025 FIFA Club World Cup.
