News Corp to sell Foxtel to DAZN for $2.1 billion

Rupert Murdock-led News Corporation has agreed to sell its loss-making digital platform Foxtel to DAZN Group Ltd, a UK-based sports streaming platform, for an enterprise value of A$3.4 billion ($2.1 billion).

The sale consideration includes outstanding shareholder loans of A$578 million that Foxtel owes to News Corp, which will be repaid in cash at closing of the transaction. DAZN will refinance Foxtel’s current debt with the transfer of Foxtel. News Corp will hold a 6 per cent equity stake in DAZN and a seat on its board of directors. 

Australian telecommunications group Telstra will also sell its 35 per cent stake in Foxtel, for A$128 million, which will be used to repay shareholder loans. Telstra will also take a 3 per cent stake in DAZN.

The transaction value of A$3.4 billion represents more than 7 times Foxtel’s fiscal 2024 earnings (EBITDA).

The sale is part of News Corp’s ongoing efforts to optimise its assets and streamline the group structure.

Foxtel has been a drain on News Corp’s finances after it lost market share to smaller streaming companies. 

The sale would allow News Corp to better focus on its key growth segments, including Dow Jones, Digital Real Estate Services and Book Publishing, while also holding a minority interest in the digital and streaming business of DAZN that also includes Foxtel.

For Foxtel, a digital and streaming leader in sports and entertainment, DAZN will provide international exposure to Australian sport.

News Corp expects the transaction to close in the second half of fiscal 2025, subject to regulatory approvals and other customary closing conditions. However, Foxtel will be treated as discontinued operations in News Corp’s financial reporting from the second quarter of fiscal 2025.