The global sports streaming service DAZN has announced the acquisition of Australian pay-TV broadcaster Foxtel from its majority shareholder News Corp and minority shareholder Telstra. The enterprise value of the deal stands at a substantial US$2.2 billion. This acquisition is subject to regulatory approval.
This takeover significantly expands DAZN's operations in Australia, boosting the group’s pro-forma revenues to approximately US$6 billion. Foxtel, with its impressive 4.7 million subscribers, is a leading media company in Australia. Following the transaction, News Corp and Telstra will transition into minority shareholders in DAZN. News Corp will retain a roughly 6% equity stake and a seat on the DAZN board, while Telstra will hold 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,” stated Shay Segev, Chief Executive Officer of DAZN.
Segev further added, “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.”
Siobhan McKenna, Executive Chairman of Foxtel, highlighted the deal as international recognition of Foxtel's transformation: “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 expressed enthusiasm about DAZN's commitment: “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’s consideration of selling Foxtel was confirmed in August 2024, following an asset review. “Active discussions” regarding the sale were confirmed in November 2024. While a prominent player, Foxtel has faced pressure from low-margin streaming services. DAZN's acquisition marks its first entry into the traditional pay-TV market, a strategic move likely to be closely watched by legacy pay-TV operators globally. With News Corp and Telstra's continued involvement, DAZN’s future acquisitions could be substantial.