News Corp Sells Australian Cable TV Unit Foxtel to DAZN for $2B
News Corp has agreed to sell its Australian cable TV unit Foxtel to British-owned sports network DAZN for a total of A$3.4 billion ($2 billion) including debt, significantly reducing the media company’s exposure to a segment of the industry hit by streaming platforms.
Under the deal, News Corp will gain a board seat and hold a 6% stake in DAZN, a global streaming platform available in North America, Europe, and Asia that is backed by Ukrainian-born billionaire Len Blavatnik. DAZN is a broadcasting partner for several major sports leagues in Europe and provides access to a range of sports content, including American football, boxing, and baseball, over its streaming platform.
The valuation of Foxtel represents seven times its 2024 earnings before interest, tax, depreciation, and amortisation (EBITDA). Shareholder loans valued at A$578 million will be repaid in full as part of the deal, and Foxtel’s current debt will be refinanced at closing.
News Corp launched Foxtel in 1995, but the company’s earnings have been impacted in recent years as more consumers moved away from traditional TV services and towards cheaper streaming options. The company has sought to diversify Foxtel’s offerings, launching its own streaming services, including Kayo, and adding content from other channels.
The deal allows News Corp to focus on its core operations, including publishing and digital real estate services. The company is one of the largest players in the global media industry and owns a range of companies, including Dow Jones and HarperCollins.
Telstra, which owned 35% of Foxtel, will also exit the partnership and receive a 3% stake in DAZN, plus A$128 million for the repayment of shareholder loans. The deal is due to be finalized in the second half of 2025, subject to regulatory approval.