News Corp has agreed to sell its Australian cable television unit Foxtel to the British-owned sports network DAZN for 3.4 billion Australian dollars (2 billion euros), including debt, thus reducing the exposure of the Murdoch-controlled media empire to a business that has been disrupted by streaming platforms.
News Corp will get a seat on the board of directors and a 6% stake in DAZN, a global streaming platform based in London available in North America, Europe and Asia and backed by Ukrainian-born billionaire Len Blavatnik.
DAZN is issuing partner of the Italian Serie A, Spanish LaLiga, the German Bundesliga and the French Ligue 1. It competes with traditional television and satellite channels and offers access to a wide range of sports content, including American football, boxing and baseball.
“Australians watch more sport than any other country in the world, making 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» said DAZN co-founder and CEO Shay Segev.
Foxtel, launched by News Corp in 1995, has weighed on the media giant’s profits for years as the number of people paying monthly subscriptions for its broadcast content shifted to cheaper streaming options like Netflix.
It has tried to diversify by adding its own streaming services, such as Kayo, which broadcasts live local sports Australian Football League (AFL) and National Rugby League (NRL), to regain market share in sports broadcasting. It also broadcasts ESPN.
Television rights
However, its income has suffered, since the cost of sports broadcasting rights has skyrocketed while subscriber income has decreased. To help offset the costs, Foxtel often shares the rights with free-to-air stations.
The current seven-year agreement of the AFL with Foxtel-Channel sevenwhich runs until 2031, is worth A$4.5 billion, while Cricket Australia will raise A$1.5 billion from the same partners over the same time period.
The tennis rights, including the Australian Open Grand Slam, have been blocked until 2029 by Nine Entertainment, which has its own streaming service, Stan. Nine is also in exclusive talks with Rugby Australia about broadcast rights beyond next year, as the country prepares to host the Rugby World Cup in 2027. Foxtel’s valuation represents seven times its earnings before interest, tax , depreciation and amortization (EBITDA) of 2024, News Corp said in a statement.
As part of the transaction, shareholder loans, valued at A$578 million, will be repaid in full and the Foxtel’s current debt will be refinanced at closing. News Corp CEO Robert Thomson said the deal will allow the company to focus on its core businesses: Dow Jones, digital real estate and book publishing. News owns 61.4% of online real estate platform REA Group and is the parent company of publisher HarperCollins.
The deal will close in the second half of 2025 and is subject to regulatory approval, according to News Corp. Given DAZN’s foreign ownership, The operation must be authorized by the Foreign Investment Review Board (FIRB).
The Australian telecommunications company Telstra has also sold its 35% stake in Foxtel to DAZN and will receive A$128 million in cash and a 3% stake in DAZN.
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