News Corporation announced it has entered into a definitive agreement to sell Foxtel Group to DAZN Group Limited, a premier global sports streaming platform. Under the terms of the deal, shareholder loans for A$578 million outstanding and owing to News Corp will be repaid in full in cash at closing.
Foxtel’s current debt will be refinanced at closing and transfer with Foxtel, and News Corp will hold a minority equity interest in DAZN of about 6% and one seat on its Board of Directors. And Telstra Group will also sell its minority interest in Foxtel, have its shareholder loans of A$128 million repaid, and take a minority stake in DAZN of approximately 3%. The proposed deal values Foxtel at an enterprise value of A$3.4 billion, representing over 7x fiscal 2024 Foxtel EBITDA.
This agreement follows a strategic and financial review of Foxtel as part of News Corp’s ongoing efforts to optimize its portfolio and simplify the company’s structure. Under News Corp’s management, Foxtel became a digital and streaming leader in sports and entertainment. And with DAZN’s global reach, industry-leading technology, and broad content portfolio, the proposed transaction enhances Foxtel’s position as a digital-first, streaming-focused business led by the current CEO, Patrick Delany, and his world-class management team.
The proposed deal also empowers News Corp to further focus on its key growth segments, Dow Jones, Digital Real Estate Services, and Book Publishing, while also providing the company with a shareholding in a larger global sports streaming and entertainment company with over 300 million viewers across 200 markets. DAZN continues to experience significant growth as it pursues expansion into new markets and across more sports.
The deal, expected to close in the second half of fiscal 2025, is subject to regulatory approvals and other customary closing conditions. And for News Corp financial reporting purposes, Foxtel will be classified as discontinued operations as of the second quarter of fiscal 2025.
Goldman Sachs served as financial advisor, and Gibson, Dunn & Crutcher, and Allens served as legal advisor to News Corp on the deal.
KEY QUOTES:
“This agreement is a victory for News Corp shareholders, DAZN, and sport fans in Australia and around the world. 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. This transaction also allows News Corp to focus on our other growth pillars of Dow Jones, Digital Real Estate and Book Publishing, while benefiting from repayment of our shareholder loans and an improved credit profile. We are proud to be a long-term partner of DAZN and its talented team.”
- News Corp Chief Executive Robert Thomson
“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.”
“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.”
“We’re looking forward to working closely with Patrick Delany and his team, as well as News Corp and Telstra as shareholders in DAZN, to realize our ambitious vision for the future of sport entertainment.”
- Shay Segev, Chief Executive Officer of DAZN
“Over the last seven years the Foxtel team, with the strong support of News, have achieved an extraordinary turnaround in an intensely competitive environment.”
- The Chairman of Foxtel, Siobhan McKenna
“News Corp’s unwavering support and guidance has seen Foxtel successfully reinvent itself into a dynamic, streaming-led business delivering strong financial performance. We are excited to embark on the next chapter with DAZN, a premier global sports streaming provider, as our new shareholder. DAZN’s backing will enhance our strategy needed, provide access to their global reach, and strengthen the infrastructure and technology to accelerate our transformation. Most importantly, we will continue to be a proudly Australian-based business, led by local management, committed to delivering locally-produced sports and entertainment content for our audiences.”
- Foxtel Group CEO Patrick Delany
