Sports streaming service DAZN is acquiring Australian pay-TV broadcaster Foxtel from its majority shareholder News Corp and minority shareholder Telstra at an enterprise value of US$2.2 billion.
With the takeover, which is subject to regulatory approval, DAZN significantly expands is operations in Australia, bringing the group’s pro-forma revenues towards US$6 billion. Foxtel is one of Australia’s leading media companies with 4.7 million subscribers.
Under the terms of the transaction, News Corp and Telstra will become minority shareholders in DAZN. News Corp will hold a minority equity interest in DAZN of approximately 6% as well as one seat on the DAZN board while Telstra will take a minority stake in DAZN of around 3%.
“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. 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,” said Shay Segev, Chief Executive Officer of DAZN.
“We are committed to supporting and investing in Foxtel’s television and streaming services, across both sports and entertainment, using our world-leading technology to further enhance the viewing experience for customers. We are also committed to using our global reach to export Australia’s most popular sports to new markets around the world, and we will continue to promote women’s and under-represented sports,” added Segev.
Siobhan McKenna, Executive Chairman of Foxtel, said the agreement with DAZN was international recognition of the transformation of Foxtel from an incumbent pay TV operator to a sports and entertainment digital and streaming leader: “Over the last seven years the Foxtel team, with the strong support of News, have achieved an extraordinary turnaround in an intensely competitive environment.”
Foxtel Group CEO Patrick Delany said: “We are excited by DAZN’s commitment to the Australian market. They are experts in the sports media business and can play a significant role in supporting Foxtel as the business grows its streaming capabilities, bringing a bigger and better service to customers across entertainment, news and sport. They are a perfect match for us as we look toward this next era of growth.”
News Corp confirmed in August 2024 that it is considering the sale of Foxtel following a review of the company’s assets. In November 2024, it was confirmed that “active discussions” over the sale were taking place.
While a key player in the Australian media scene, Foxtel has come under pressure from streaming businesses that are able to operate under low margins. The acquisition of Foxtel marks a noteworthy strategic move by DAZN as it enters the classic pay-TV market for the first time. Legacy pay-TV operators in other countries will undoubtedly follow the development with great interest. With News Corp and Telstra as shareholders, DAZN could embark on a larger acquisition spree.
