The global sports streamer, owned by Britain’s second-richest man Len Blavatnik, expects to close the deal in the second half of 2025, pending regulatory approval, in a move that will radically reshape the Australian sports media landscape.
DAZN has agreed to buy Foxtel from News Corp and Telstra in a deal valued at $3.4 billion.
Under terms of the agreement, Foxtel and its streaming businesses Kayo Sports and Binge will continue to operate under local management, led by CEO Patrick Delany, with News Corp retaining a 6 per cent equity interest in DAZN and a seat on its board.
Telstra, which owns 35 per cent of Foxtel, has agreed to sell its minority stake to News Corp and will have a 3 per cent equity stake in DAZN. The deal includes the repayment of shareholder loans amounting to A$706 million.
News Corp has been looking to sell Foxtel for some time in order to focus on its faster growing parts of the business, Dow Jones (the publisher of the Wall Street journal), its digital real estate division (including REA Group) and HarperCollings, its book publishing arm.
DAZN is a global sports streaming and entertainment company with more than 300 million viewers across 200 markets.
“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 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.”
News Corp CEO Robert Thomson described the sale as “a victory for News Corp shareholders, DAZN, and sport fans in Australia and around the world”.
“Foxtel has been transformed into a genuine digital and streaming leader in Australia, and we believe 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.
The acquisition of Foxtel is of particular value to DAZN because it has sewn up the domestic sports rights of the AFL and NRL until the end of the decade, and also has the rights for cricket, netball, NBA, F1 and a host of other high profile events
Established in 1995, Foxtel Group provides DAZN with 1.4 million paying cable customers and 3.2 million paying streaming subscribers across Kayo Sports and Binge. The group generates $3 billion in revenue and $496 million in earnings in FY24.
DAZN has the rights to a host of blue chip sports events, including European football, women’s football, boxing and MMA, and the NFL internationally.
It has been the pay per view platform for some of the biggest boxing bouts in recent times, including Oleksadr Usyk’s heavyweight victory over Tyson Fury on Saturday night.
DAZN could potentially provide Australian sporting codes with global distribution that could dramatically alter the sports rights market in years to come.
