In a landmark deal valued at US$2.2 billion, DAZN, the global sports streaming service, is set to acquire Foxtel, a leading Australian pay-TV broadcaster. The acquisition, pending regulatory approval, significantly expands DAZN’s presence in the Australian market, adding Foxtel’s impressive subscriber base of 4.7 million. This move propels DAZN’s pro-forma revenue towards a substantial US$6 billion.
Under the agreement, News Corp and Telstra, Foxtel’s current majority and minority shareholders respectively, will transition to holding minority stakes in DAZN. News Corp will retain approximately 6% equity and a seat on the DAZN board, while Telstra will hold around 3%. DAZN CEO Shay Segev expressed excitement about the acquisition, stating, “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 elaborated on DAZN’s commitment to Foxtel, emphasizing, “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, lauded 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.” Patrick Delany, Foxtel Group CEO, added, “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, announced in August 2024, followed a review of its assets. Active discussions regarding the sale were confirmed in November 2024. This acquisition signifies a strategic move by DAZN into the traditional pay-TV market, a notable development likely to be closely watched by legacy pay-TV operators globally.