News Corp’s Foxtel is edging closer to a sale, with billionaire-backed sports streaming platform DAZN emerging as the leading contender to acquire the pay-TV and streaming giant. The deal, which could be finalised before Christmas, would mark a significant shift in Australian media ownership, placing Foxtel under foreign control.
Foxtel, which broadcasts marquee Australian sports such as the AFL and NRL, was publicly put up for sale in August. News Corp has been in advanced negotiations with DAZN, a global sports streaming leader backed by British-Ukrainian billionaire Len Blavatnik, after earlier talks with US private equity firm Platinum Equity broke down due to what sources described as News Corp’s “unrealistic asking price.”
DAZN’s potential acquisition of Foxtel signals a strategic expansion into Australia, where Foxtel dominates sports broadcasting with long-term rights to the AFL, NRL, and cricket. Foxtel recently secured AFL and cricket broadcasting rights until 2031, and the NRL is negotiating its next deal for 2027 and beyond.
When the business was put up for sale in August this year, News Corp chief exec Robert Thomson confirmed that there was third-party interest in the business and that it was confident in the company’s long-term prospects. The priority, Thomson said at the time, was “continuing to review our portfolio with a focus on maximising returns for shareholders”.
“That review has coincided recently with third-party interest in a potential transaction involving the Foxtel Group, which has been positively transformed in recent years. We are evaluating options for the business with our advisors in light of that external interest.”
DAZN, a global sports streaming giant known for broadcasting the NFL, MMA, and UEFA Women’s Champions League, has reportedly been advised by Bank of America on this deal. While the terms remain undisclosed, Foxtel’s debt load of approximately $1.2 billion looms large in the negotiations.
The acquisition aligns with DAZN’s global ambitions, which recently included a $1 billion partnership with FIFA to broadcast the revamped Club World Cup in 2025. Traditional broadcasters reportedly dismissed the deal due to FIFA’s high asking price.
DAZN has faced significant financial challenges, with $1.5 billion in operating losses reported for 2022. Despite its financial hurdles, acquiring Foxtel would make DAZN a dominant sports streaming platform in Australia, adding 4.6 million Foxtel subscribers to its roster, including users of the streaming services Kayo and Binge.
Foxtel’s sale would mark the end of an era for News Corp, which launched the platform nearly 30 years ago as a joint venture with Telstra. Despite strong growth in Kayo and Binge, Foxtel’s traditional broadcast subscriber base has declined, underscoring the challenges of adapting to a rapidly changing media landscape.
DAZN’s acquisition would reshape the Australian media market, positioning the streaming platform as a dominant player. However, questions remain about the financial and operational viability of the deal, given DAZN’s history of losses and the complexities of managing Foxtel’s debt and legacy operations.
Both News Corp and DAZN have declined to comment on the deal.
