News Corp, Telstra To Sell Foxtel In A $3.4 Billion Deal With DAZN, Renounce Control Of Broadcast Rights

In a $3.4 billion deal with the world’s largest sports streaming service, DAZN, News Corp. and Telstra will sell Foxtel, giving up control of its whole portfolio of domestic and international sports broadcast rights, including cricket, the AFL, and the NRL.

Subject to regulatory permission, DAZN, which is owned by Len Blavatnik, the second-richest man in Britain, will acquire a majority share in the Australian pay television industry, including the Hubbl set-top box and the streaming services Kayo and Binge, BrandSpur digital news platform reports.

The deal will give News Corp, the Murdoch-controlled media conglomerate, a board seat and a 6% share in DAZN. The deal is anticipated to be finalized in the first half of 2025, so Foxtel’s 4.7 million Australian customers shouldn’t anticipate any immediate changes to their subscriptions or pricing, a representative said.

Dan Barrett, a contributor for the television industry publication Always Be Watching, claims that yourDAZN, which is pronounced “Da-zone,” will acquire Foxtel’s variety of sports broadcast rights and establish a significant presence in Australia as a result of the agreement.

According to him: “In one swoop, DAZN’s been able to come in and just buy up all those big major Australian sports rights.”

Blavatnik, a Ukrainian billionaire who also owns companies like Warner Music, which is home to Ed Sheeran, Dua Lipa, and Megan Thee Stallion, is supporting DAZN. When it first began in 2016, the company concentrated on European countries. Since 2020, however, it has expanded into 200 worldwide regions, most notably in December when it acquired the exclusive streaming rights for the 2025 FIFA Club World Cup.

Shay Segev, the CEO of DAZN, stated that the acquisition of Foxtel will help the firm achieve its goal of being “the global home of sport.”

He had this to say: “Australians watch more sport than any other country in the world, which makes this deal an incredibly exciting opportunity for DAZN.”

With DAZN estimating 300 million monthly subscribers worldwide in 2023, Segev stated his goal to sell Australian sports globally.

Foxtel has broadcast deals for the AFL, cricket, and rugby league. For many years, Foxtel was a very profitable source of income for News Corp., but the media conglomerate sought to sell the pay television provider as it faced competition from an increasing number of streaming alternatives.

According to Foxtel Now’s August earnings data, Australians are switching to Kayo and Binge and discontinuing their subscriptions to the streaming service. A Foxtel representative stated that the company was thinking about bringing DAZN content to its Australian clients in the future. DAZN now streams foreign sports, such as European football, boxing, and the NFL, in Australia under several subscription levels.

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When Max, a streaming competitor from Warner Bros. Discovery, launches in the first half of 2025, Foxtel’s Binge platform is expected to lose HBO shows. The possible inclusion of additional content would enhance Foxtel’s sports offers at that time.

Barrett went on to say: “A giant international sports player coming along is almost a perfect save for Foxtel’s business. It’ll strengthen Foxtel as a sporting product and the future of Foxtel was always going to be sport.

“In the next couple of years, we’re probably going to see Foxtel drop away a lot of the general entertainment and movies anyway, and just move in a direction of sports,” he added.

Through the agreement, Foxtel will pay back $128 million to Telstra and $578 million to News Corp. Telstra will acquire a roughly 3% investment in DAZN, while News Corp will join the board and acquire a 6% stake. Foxtel’s local chief executive, Patrick Delany, will continue to lead the network under the agreement. He expressed gratitude to News Corp. for helping to revitalize the platform.