News Corp has agreed to sell its Australian cable TV unit, Foxtel, to the British-owned sports network DAZN in a deal valued at A$3.4 billion ($2 billion), including debt.
This move reduces the Murdoch-controlled company’s exposure to a legacy business facing challenges from the rise of streaming platforms.
Under the agreement, News Corp will secure a 6% stake in DAZN and a board seat, signifying a strategic pivot for the global media giant.
The acquisition marks DAZN’s entry into the Australian market, where it plans to compete with established local and international streaming services.
With a population deeply invested in sports, DAZN’s expansion aligns with its strategy to become a global hub for sports content, a role it already plays in regions like Europe, North America, and Asia.
Foxtel’s decline, and DAZN’s Australian entry
Foxtel, which was launched in 1995, has struggled to maintain its profitability due to a significant shift in consumer preferences.
Traditional subscription models have lost ground to streaming platforms such as Netflix, and Foxtel’s premium pricing model has failed to attract cost-conscious consumers.
While the company has made efforts to modernize by introducing streaming services like Kayo, which covers popular Australian sports leagues, these have not reversed its overall decline.
DAZN’s acquisition of Foxtel offers an opportunity to disrupt the Australian streaming landscape.
By potentially introducing competitive pricing for its sports-focused streaming services, DAZN could challenge both traditional broadcasters and established platforms.
The sports broadcasting market in Australia is lucrative, with deals like the A$4.5 billion agreement between Foxtel-Channel Seven and the AFL running until 2031.
Similarly, Cricket Australia’s seven-year deal with the same partners is valued at A$1.5 billion.
Foxtel has often struggled to compete with free-to-air broadcasters and other streaming services due to soaring rights costs.
DAZN’s ability to leverage its global infrastructure and partnerships with leagues like Serie A, La Liga, and Bundesliga could reshape the market by delivering diverse sports content at competitive rates.
News Corp and its core publishing operations
For News Corp, the divestment of Foxtel underscores its strategy to focus on core publishing operations, including Dow Jones, HarperCollins, and its 61.4% stake in REA Group.
The valuation of Foxtel in this deal—seven times its projected 2024 EBITDA—allows News Corp to clear shareholder loans of A$578 million and refinance existing debt.
Telstra, another major stakeholder in Foxtel, is also exiting the business.
It has sold its 35% stake to DAZN for A$128 million in cash and a 3% equity share in DAZN.
Telstra’s move aligns with its focus on its telecom operations, which have delivered steady returns amidst the changing media landscape.
The transaction is expected to close in the second half of 2025, subject to regulatory approvals.
Given DAZN’s foreign ownership, the deal will require clearance from Australia’s Foreign Investment Review Board (FIRB).
DAZN’s majority shareholder, Len Blavatnik, is a dual US and British citizen, and his Access Industries portfolio, valued at over $35 billion, lends credibility to DAZN’s expansion plans.
Shares of News Corp rose by 3.5% to A$50.79 following the announcement, outperforming the broader ASX 200 index, which climbed 1.6%.
Telstra shares also gained 1.1%, reflecting market confidence in the deal’s long-term potential.
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