News Corp has agreed to sell its Australian Cable TV unit Foxtel Sold to British sports network DAZN for A$3.4 billion (US$2 billion).
The deal, which includes debt, reduces the exposure of the Murdoch-controlled media empire to greater competition from streaming platforms.
News Corp will gain board seat and hold 6% stake DAZN, a streaming platform The company, headquartered in London and backed by Ukrainian-born billionaire Len Blavatnik, sells in North America, Europe and Asia.
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Blavatnik, who holds dual U.S. and British citizenship, owns DAZN through his New York-based investment firm Access Industries, which has a portfolio worth more than $35 billion. It also owns a majority stake in Warner Music Group.
DAZN competes with traditional TV and satellite channels, offering a range of sports content including American football, boxing and baseball. It partners with Italy’s Serie A, Spain’s Serie A, Germany’s Bundesliga and France’s Ligue 1 to broadcast European football matches.
In October, two people familiar with the matter told Reuters that Saudi Arabia’s Public Investment Fund (PIF) was one of the potential bidders and was exploring buying a minority stake in DAZN worth about $1 billion.
PIF later said it was not currently in talks to buy the shares.
Australia’s sports market is huge
DAZN co-founder and chief executive Shay Segev said: “Australians watch more sports than any other country in the world, making this deal an incredibly exciting opportunity for DAZN to enter a key market.
DAZN said Foxtel chief executive Patrick Delany will continue in his role.
Foxtel, launched by News Corp in 1995, has put pressure on the media giant’s profits for years as people who subscribed to its broadcasts monthly switched to cheaper streaming options such as Netflix.
It has tried to diversify by adding its own streaming services, such as Kayo, which broadcasts the Australian Football League (AFL) and National Rugby League (NRL), as well as ESPN.
However, its profits have suffered as the cost of sports broadcast rights has soared while subscriber revenue has shrunk. To help offset costs, Foxtel often shares rights with free-to-air broadcasters.
“Foxtel’s traditional premium pricing model has long been a point of contention, especially in an era dominated by more affordable streaming alternatives,” said independent telecoms analyst Paul Budde.
“DAZN’s entry into the Australian market, potentially offering competitive or lower prices, could significantly change consumer expectations and reshape the pricing landscape.”
The AFL’s current seven-year deal with Foxtel-7, which runs until 2031, is worth $4.5 billion, while Cricket Australia will receive $1.5 billion from the same partner over the same period.
Tennis rights, including the Australian Open Grand Slam, have been locked up until 2029 by Nine Entertainment, which has its own streaming service Stan.
Number nine is also exclusive Negotiating broadcast rights with Rugby Australia After next year, the country is preparing to host the 2027 Rugby World Cup.
The Australian rugby team, known as the Wallabies, will play a three-match series against the British Lions in mid-2025, which is sure to generate huge interest from the UK, parts of Europe, Southeast Asia, Oceania and South America.
But it is unclear whether DAZN is interested in challenging Nine and Stan’s rugby rights, which are currently under negotiation. Analysts said it wouldn’t be surprising if they did.
News Corp focuses on publishing
News Corp said in a statement that Foxtel was valued at seven times its 2024 earnings before interest, tax, depreciation and amortization (EBITDA).
Outstanding shareholder loans worth A$578 million will be repaid in full and Foxtel’s current debt will be refinanced at closing.
News Corp. Chief Executive Robert Thomson said the deal would allow the company to focus on its core businesses of Dow Jones, digital real estate and book publishing. News owns 61.4% of online real estate platform REA Group and is the parent company of publisher HarperCollins.
News Corp said it expects to complete the Foxtel deal in the second half of 2025.
A spokesman for the Treasury, which oversees the Foreign Investment Review Board, said it would not comment on individual cases.
Telstra will also sell its 35% stake in Foxtel to DAZN, receiving A$128 million in cash and a 3% stake in DAZN.
News Corp’s shares on the Australian Securities Exchange rose 3.5% to A$50.79 on Monday, outperforming the broader market’s 1.6% gain. Telstra shares rose 1.1%.
- Reuters Additional input and editing by Jim Pollard
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