News Corp Sells Foxtel Group to DAZN Group for A$3.4 Billion
News Corp has announced its decision to sell its Australian television unit, Foxtel Group, to British sports streaming platform DAZN Group for an enterprise value of A$3.4 billion (approximately $2.1 billion). The sale comes as Foxtel struggles to compete with the rise of streaming services such as Netflix, and is part of News Corp’s efforts to streamline its businesses and unlock long-term shareholder value.
As part of the deal, News Corp will take a 6% stake in DAZN and hold a seat on its board of directors. The company will also receive $578 million in cash to repay shareholder loans. Telstra, a major telecommunications provider, will also sell its minority interest in Foxtel in exchange for a 3% stake in DAZN and $128 million in shareholder loans.
The sale follows News Corp’s announcement in August that it was considering selling off Foxtel, which has experienced a steady decline in revenue and profit due to increased competition from streaming platforms. Despite launching its own streaming services, Foxtel has been unable to offset the decline in sales.
The deal, subject to regulatory approval, will allow DAZN to enter the Australian market, which the company sees as a “key” market. The acquisition marks a significant expansion for DAZN, which is known for its sports-focused streaming services.