Global sports streaming service DAZN has agreed to acquire Australian pay-TV broadcaster Foxtel from its majority shareholder News Corp and minority shareholder Telstra. The deal, valued at US$2.2 billion, is subject to regulatory approval. This acquisition represents a significant expansion for DAZN in Australia, boosting its pro-forma revenues towards US$6 billion.
Foxtel, with its 4.7 million subscribers, is a leading media company in Australia. Under the terms of the transaction, News Corp and Telstra will become minority shareholders in DAZN. News Corp will retain approximately 6% equity and a board seat, while Telstra will hold around 3%. Shay Segev, DAZN’s Chief Executive Officer, stated: “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.”
Segev further emphasized DAZN’s commitment to Foxtel’s services and investment in its technology to enhance the viewing experience. He also highlighted plans to leverage DAZN’s global reach to export popular Australian sports to new markets and promote women’s and under-represented sports. Siobhan McKenna, Foxtel’s Executive Chairman, described the agreement as international recognition of Foxtel’s transformation into a digital and streaming leader. Foxtel Group CEO Patrick Delany expressed excitement about DAZN’s commitment to the Australian market and their expertise in the sports media business, highlighting their role in supporting Foxtel’s growth in streaming.
News Corp’s consideration of selling Foxtel was confirmed in August 2024, followed by confirmation of active discussions in November 2024. The acquisition marks DAZN’s first foray into the traditional pay-TV market, a significant strategic move that is likely to be closely watched by other legacy pay-TV operators globally. With News Corp and Telstra as shareholders, the possibility of further acquisitions by DAZN remains.