UK sports streaming giant DAZN has agreed to purchase Foxtel in a A$3.4 billion deal, marking the end of News Corp (NASDAQ:NWSA)’s three-decade-long ownership of the subscription and streaming powerhouse.
News Corp’s sale includes Foxtel’s key platforms, Kayo Sports and BINGE, both of which have driven significant growth in recent years, attracting nearly five million subscribers. Telstra, which held a 35% stake, will also divest its share in the deal.
News Corp global chief executive Robert Thomson hailed the agreement as a milestone for all stakeholders.
“Foxtel has been transformed into a genuine digital and streaming leader in Australia. DAZN is the right owner to take the business to the next level with their technological capabilities, global footprint and compelling sports rights,” he said.
Foxtel’s operations, including Fox Sports, will be integrated into DAZN, although Sky News Australia will remain under News Corp’s ownership.
News Corp will retain a 6% stake in DAZN, along with a seat on its board, while Telstra will hold approximately 3%. Foxtel chief executive Patrick Delany will continue in his role.
DAZN, backed by billionaire Sir Leonard Blavatnik, has a strong global presence in sports broadcasting, including rights to Serie A, La Liga, Bundesliga and premier boxing events.
“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.
Foxtel’s subscription and streaming rights to major Australian sports leagues, including the AFL and NRL, as well as its recent pivot to digital streaming, position DAZN to challenge global players like Amazon (NASDAQ:AMZN) and ESPN.
The transaction is expected to finalise in the first half of 2025, pending regulatory approval.