DAZN to buy Foxtel in £1.7bn deal

Global sports streamer DAZN has agreed to buy a majority stake in Australian pay-TV operator Foxtel Group from News Corp and Telstra, in a deal valued at A$3.4bn (£1.7bn) including debt.

Len Blavatnik’s DAZN will also gain control of Foxtel’s 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, as well as HBO shows.

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.

The deal, confirmed on 22 December, is subject to regulatory clearance and expected to be completed in the first half of 2025.

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.

‘Natural evolution’

The sale of Foxtel comes amid growing competition from global streamers such as Netflix, Disney+ and Amazon’s Prime Video in Australia.

It also follows the entrance of Warner Bros Discovery’s Max streamer in the country later this year, which will hit Binge’s exclusive rights deal to HBO shows.

DAZN said Foxtel would “maintain its local character” and focus on streaming, with boss Patrick Delany remaining in post.

Shay Segev, chief executive at DAZN, said his company was “committed to supporting and investing in Foxtel’s television and streaming services, across both sports and entertainment”, adding the deal would also boost the appeal of Australia sports overseas.

“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,” he said.

“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,” Segev added.

Delany described the deal as a “natural evolution” for Foxtel following its shift towards sports streaming with Kayo.

“We are excited by DAZN’s commitment to the Australian market. They are experts in the sports media business and can play a significant role in supporting Foxtel as the business grows its streaming capabilities, bringing a bigger and better service to customers across entertainment, news and sport. They are a perfect match for us as we look toward this next era of growth.”

“After launching Kayo later in 2019 and Binge in 2020, today we are the largest Australian-based streamer of sport and entertainment, we have stabilised our Foxtel base and launched Hubbl to help consumers find all the streamed content they love all in one place. This wouldn’t have been possible without the support and encouragement of News Corp.”