Australia's Foxtel sold to DAZN in £1.7bn deal

DAZN has completed its acquisition of Australian broadcaster Foxtel for £1.7bn.

The deal, which was unveiled in late December, will see Foxtel continue to operate as a standalone company, with assistance from the global sport broadcaster.

Len Blavatnik’s DAZN will gain control of Foxtel’s pay operations, as well as sport streamer Kayo and set-top box Hubbl, plus a raft of sporting rights including domestic and international cricket, Australian Football League and National Rugby League.

The deal also includes general entertainment streamer Binge, the home of hit romcom Colin From Accounts and forthcoming dramedy The Last Anniversary.

DAZN said that Foxtel, Kayo Sports, Binge and Hubbl brands will continue as they are.

News Corp, which had owned 65% of Foxtel, will take a 6% stake in DAZN as part of the agreement, while Telstra, which had owned a 35% stake in the pay-TV firm, will gain a 3% interest in the sports streaming company.

News first emerged in August that Rupert Murdoch’s News Corp was considering selling Sydney-based Foxtel, which claims 4.7m subscribers across its pay TV and streaming offerings.

Shay Segev, chief exec at DAZN, said: “This is an exciting day for DAZN and Foxtel Group and a significant milestone for DAZN as we expand our global footprint into Australia, a key sports market with passionate fans.

“Foxtel’s strong local presence, combined with DAZN’s global scale, technology, and content rights, will unlock incredible opportunities for sports fans, advertisers, and partners, while continuing to deliver great drama, lifestyle and news content.” 

Patrick Delany, chief exec at Foxtel Group, added: “DAZN’s ownership allows the Foxtel Group to remain an Australian-based business, with an Australian team and the sport, drama and entertainment that Australians love.

“As part of DAZN, we now benefit from their global scale, their leading technology platform and their track-record in innovation that will allow us to more effectively compete with the global streaming giants.

“A big part of what drives us at Foxtel is bringing the best sports and the best sports production to our subscribers. We now have the opportunity to take the AFL and NRL, our two largest and most iconic Australian sports, to a massive global audience. For our Australian subscribers, it creates the opportunity to enjoy even more of the world’s best sports.”