News Corp and telecommunications giant Telstra have finalised a landmark deal to sell their Australian cable TV and streaming service, Foxtel, to British sports streaming platform DAZN.
The agreement values the struggling business at AUD 3.4 billion (£1.8 billion), including debt.
As part of the acquisition, shareholder loans amounting to AUD 578 million will be fully repaid, and Foxtel’s existing debt will be refinanced upon the deal’s closure.
Following the transaction, News Corp will retain a 6% stake in DAZN, while Telstra will hold 3% in the London-based global sports streaming platform, which is backed by billionaire Len Blavatnik.
Foxtel Struggles Amid Shifting Viewer Preferences
Foxtel, once a dominant force in Australian broadcasting, has faced declining profits for News Corp as subscribers increasingly turn to more affordable streaming alternatives such as Netflix. In response, the company introduced its own lower-cost streaming service, but challenges persisted.
Shay Segev, DAZN’s co-founder and CEO, expressed enthusiasm for the acquisition, highlighting Australia’s strong appetite for sports content.
“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. It represents another step in our long-term strategy to become the global home of sport,” he stated.
Strategic Gains for News Corp and Telstra
News Corp will secure a seat on DAZN’s board, positioning the media giant to influence the company’s expansion as it aspires to rival platforms like Apple TV in the global streaming market.
Founded in 2016, DAZN has been scaling its presence across the globe, with this deal marking a significant entry into Australia.
Telstra will benefit from the repayment of AUD 128 million in shareholder loans, further boosting its financial position.
Market Reaction
The Australian Stock Exchange (ASX) reflected positive sentiment following the announcement.
News Corp’s shares rose 1% to AUD 49.65 in early trading, while Telstra’s shares saw a modest 0.4% increase, outperforming a rising broader market index.
This transformative deal signals a new era for Foxtel and cements DAZN’s status as a key player in the global sports streaming landscape.
