MUMBAI: It’s a deal that’s happening  down under but it’s given streaming platform Dazn group an upper hand as it continues its march towards spreading its wings even further globally. News Corp and Telstra owners of the Foxtel group– once a prized pay TV operator in Australia now turned streamer – have agreed to sell it to the Dazn group in a deal that values it at A$3.4 billion, including debt. Dazn is a  privately-held global streamer owned by British-Ukrainian billionaire Len Blavatnik.

Under the terms of the agreement, Dazn will pay News Corp’s loans to the tune  of $578 million in cash on account of Foxtel, give it a board seat and a six per cent shareholding in the acquiring company. 35 per cent Foxtel owner Telstra’s debt of A$128 million too will be repaid and it will end up with a three per cent minority interest in Dazn. Foxtel’s existing debt will be refinanced by Dazn when the deal closes. 

Founded in 2016, Dazn has more than 3,000 employees and reported a top line of $3.2bn in 2023, having grown its annual revenues by over 50  per cent on average from 2020 to 2023, through diverse revenue streams comprising subscriptions, advertising, sponsorship, and transactional video on demand. It has more than 300 million viewers across 200 markets. Dazn streams over 90,000 live events annually and is the home of European football, women’s football, boxing and MMA, and the NFL internationally. The platform features sports and leagues from around the world including Bundesliga, Serie A, LALIGA, Ligue 1, Formula 1, NBA, Moto GP, and the 2025 FIFA Club World Cup.

A press release mentioned that the agreement follows a strategic and financial review of Foxtel as part of its  ongoing efforts to optimise its portfolio and simplify its corporate structure. 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 management team. The Foxtel group includes the Foxtel, Hubbl, Flash, Kayo Sports and Binge streaming brands along with Fox Sports and Foxtel Media. Foxtel has 4.7 million streaming subscribers

The transaction, which is expected to close in the second half of fiscal 2025, is subject to regulatory approvals and other customary closing conditions. For News Corp financial reporting purposes, Foxtel will be classified as discontinued operations as of the second quarter of fiscal 2025. 

“This agreement is a victory for News Corp shareholders, Dazn, and sport fans in Australia and around the world,” said News Corp chief executive Robert Thomson. “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.”

Dazn chief executive officer Shay Segev said: “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 realise our ambitious vision for the future of sport entertainment.” 

Foxtel chairman Siobhan McKenna, said the agreement with DAZN was international recognition of the transformation of Foxtel from an incumbent pay TV operator to a sports and entertainment digital and streaming leader. “Over the last seven years the Foxtel team, with the strong support of News, have achieved an extraordinary turnaround in an intensely competitive environment.” 

Foxtel Group CEO Patrick Delany said: “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."