Murdoch’s News Corp offloads Foxtel to DAZN in landmark $2.1 billion deal  

In a significant shakeup of the Australian media landscape, Rupert Murdoch’s News Corp has reached an agreement to sell its pay-TV business, Foxtel, to global sports streaming giant DAZN. The deal, valued at approximately A$3.4 billion (US$2.1 billion) including debt, marks a major strategic shift for both companies and signals the ongoing transformation of the media industry in the face of evolving consumer habits.   

A Strategic Retreat for News Corp

For News Corp, the sale of Foxtel represents a strategic retreat from a legacy business facing increasing challenges from the rise of streaming platforms. While Foxtel has been a dominant force in Australian pay-TV for decades, it has struggled to maintain subscriber numbers in recent years as viewers increasingly opt for cheaper and more flexible streaming options like Netflix, Disney+, and even Foxtel’s own streaming services, Binge and Kayo Sports.   

By offloading Foxtel, News Corp is streamlining its portfolio and focusing on its core strengths in news publishing, including The Wall Street Journal, The Australian, and book publishing giant HarperCollins. The deal also allows News Corp to reduce its debt burden and potentially invest in other growth areas.   

DAZN’s Australian Expansion

For DAZN, the acquisition of Foxtel represents a major expansion into the Australian market and a significant boost to its global ambitions. DAZN has been aggressively acquiring sports rights around the world, and the addition of Foxtel’s extensive sports portfolio, including rights to popular Australian sports like cricket, rugby league, and Australian rules football, will solidify its position as a leading sports streaming platform.   

The deal also provides DAZN with a significant existing subscriber base and valuable infrastructure in Australia, giving it a strong foothold in the market.   

Key Aspects of the Deal

Valuation: The deal values Foxtel at approximately A$3.4 billion (US$2.1 billion), including debt.   

Equity Stake: News Corp will retain a 6% equity stake in DAZN and secure a board seat, indicating a continued interest in the sports streaming market.   

Telstra’s Exit: Telstra, the other major shareholder in Foxtel, is also exiting the business, selling its 35% stake to DAZN for A$128 million in cash and a 3% equity share in DAZN.   

Debt Refinancing: Foxtel’s debt will be fully refinanced as part of the transaction.   

Regulatory Approval: The deal is subject to regulatory approval and is expected to be finalized in the second half of 2025.   

Impact on the Australian Media Landscape

The sale of Foxtel to DAZN will have a profound impact on the Australian media landscape:

Increased Competition: The entry of a global player like DAZN is expected to intensify competition in the Australian streaming market, potentially benefiting consumers with more choices and competitive pricing.

Focus on Sports Streaming: The deal highlights the growing importance of sports streaming as a key driver of growth in the media industry.

Future of Pay-TV: The sale raises questions about the long-term future of traditional pay-TV models in the face of the ongoing shift to streaming.

A Win-Win Situation?

Both News Corp and DAZN appear to have achieved their strategic objectives with this deal. News Corp has divested a non-core asset and strengthened its financial position, while DAZN has gained a significant foothold in the Australian market and bolstered its global sports streaming ambitions.