News Corp’s Foxtel sold to UK sports platform DAZN in $3.5b deal

Foxtel has been sold in a massive $US2.2 billion ($3.5b) deal that will bring UK sports entertainment juggernaut DAZN to Australia’s shores — and catapult local codes such as AFL and NRL, along with cricket, onto a bigger global stage.

DAZN said Australia was a highly attractive sports market and the acquisition from majority owner News Corporation and minor stakeholder Telstra would stretch its global footprint.

The sale of the sports and entertainment pay TV service was first flagged in August when New Corp said there has been strong interest from potential suitors.

Foxtel also owns streaming brands Binge, Kayo Sports and its recently launched TV aggregator Hubbl.

DAZN said Foxtel’s base of 4.7 million subscribers would benefit from its extensive portfolio of sports content, platform technology, and global reach.

Chief executive Shay Segev said Australians watched more sport than any other country in the world.

“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,” Mr Segev said.

“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.

Foxtel was launched in Australia with 20 channels in 1995 but was until recently considered by many a dying business after streaming platforms including Netflix emerged to supplant legacy pay TV models.

In the past few years it has shifted away from its pay TV base to focus on gaining more streaming rights by building sports network Kayo and entertainment service Binge.

Murdoch family-controlled News Corp has a 65 per cent stake in Foxtel, with the remained held by Telstra. Both will emerge from the sale with stakes in DAZN — with News Corp holding 6 per cent and Telstra 3 per cent.

Foxtel chief executive Patrick Delany will stay on in the top job and DAZN has vowed the service would “maintain its local character”.

Mr Delany said the deal was a natural evolution for Foxtel.

“We are excited by DAZN’s commitment to the Australian market,” he said.

“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.”

For DAZN — which streams more than 90,000 live events annually to 300 million viewers and is available in more than 200 markets — the deal for Foxtel gives it the heft to challenge bigger media players for rights to lucrative television rights.

It current has rights to football leagues in Spain, Italy and Germany, women’s football, boxing and MMA, and America’s NFL internationally. It has also shifted into its own betting business after generating revenue of $US3.2b in 2023.

It was founded in 2016 and is backed by Sir Len Blavatnik’s Access Industries.

News Corp chief executive Robert Thomson said the media and publishing business could now focus on its markets, online real estate and book publishing divisions.

“Foxtel has been transformed into a genuine digital and streaming leader in Australia, and we believe DAZN is the right owner to take the business to the next level with their technological capabilities, global footprint and compelling sports rights,” Mr Thomson said.

The deal is expected to be finalised by the middle of next year.