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Highlights
News Corp (NWS) and Telstra (TLS) agree to sell Foxtel to DAZN in a multi-billion-dollar transaction.
The deal includes Kayo Sports, a key digital asset in the Australian sports broadcasting market.
DAZN’s entry into Australia promises an expansion of its global sports streaming footprint.
News Corp (ASX:NWS) and Telstra (ASX:TLS) have reached an agreement to sell Foxtel, the prominent Australian pay-TV platform, to DAZN, a United Kingdom-based streaming powerhouse. The deal, valued at $3.4 billion, is set to finalize by late 2025, reshaping the Australian sports broadcasting landscape.
Foxtel, jointly owned by News Corp with a 65% stake and Telstra holding the remaining 35%, has been a dominant force in delivering premium sports and entertainment content. This sale reflects a strategic move for both sellers to focus on other growth opportunities while transitioning Foxtel’s extensive subscriber base to DAZN.
The acquisition includes Kayo Sports, Foxtel’s digital platform launched in 2018, which caters to Australia’s growing appetite for sports streaming. With this move, DAZN secures a strong foothold in the Australian market, inheriting Foxtel’s 1.4 million cable subscribers and 3.2 million streaming users. Collectively, these platforms generate approximately $1.9 billion in annual revenue, solidifying DAZN’s position in the region.
DAZN cofounder and CEO Shay Segev expressed enthusiasm about entering the Australian market, citing the country's passion for sports. He noted, “Australians watch more sport than any other country in the world, which makes this deal an exciting opportunity for DAZN to expand and become the global home of sport.”
The path to this deal has been developing over several months. Initial reports in November highlighted DAZN’s interest in acquiring Foxtel, and since then, third-party interest in the company has grown. News Corp had previously considered floating Foxtel on the stock market, but the plan was shelved in 2021 due to limited interest.
Foxtel's debt of $777 million will also transfer to DAZN as part of the acquisition. The integration of Foxtel’s assets into DAZN’s portfolio will grant the British streaming company access to popular Australian sports, including cricket, rugby league, and AFL, further enhancing its offerings for sports enthusiasts worldwide.
Despite the major announcement, News Corp and Telstra shares showed minimal movement. News Corp shares opened at $49.64, reflecting a slight uptick of around 1%, while Telstra shares held steady at $4 early in trading.
This transaction not only reinforces DAZN’s ambitions to dominate global sports streaming but also marks a pivotal shift in the Australian broadcasting sector.
