News Corp Sells Foxtel to DAZN in a $2.1 Billion Deal

News Corp has finalized an agreement to sell its Australian cable-TV business, Foxtel, to DAZN, a global sports streaming platform, for A$3.4 billion (approximately $2.1 billion), including debt. The transaction reduces News Corp's exposure to traditional television services amid the growing dominance of streaming platforms.

As part of the deal, News Corp will acquire a 6% stake in DAZN and gain a seat on its board, while DAZN secures key streaming rights for major Australian sports, including the Australian Football League (AFL) and National Rugby League (NRL). This move aligns with News Corp's broader strategy to streamline its operations as Rupert Murdoch reshapes his media empire.

The sale values Foxtel at seven times its projected 2024 earnings before interest, taxes, depreciation, and amortization (EBITDA), a figure News Corp highlighted in its announcement. Analysts from Morgan Stanley described the valuation as higher than expected, marking a positive outcome for one of News Corp's less robust assets.

DAZN, headquartered in London and backed by Ukrainian-born billionaire Len Blavatnik, operates across North America, Europe, and Asia. Blavatnik, who holds dual U.S. and British citizenship, owns DAZN through his New York-based investment firm, Access Industries, which boasts a portfolio valued at over $35 billion. Access Industries also holds a majority stake in Warner Music Group.

Known for its extensive sports content, DAZN competes with traditional television and satellite networks. It offers coverage of American football, boxing, and baseball, while also broadcasting top European football leagues, including Italy's Serie A, Spain's LaLiga, Germany's Bundesliga, and France's Ligue 1.

In recent months, DAZN has been the subject of speculation regarding additional investment. In October, sources suggested that Saudi Arabia's Public Investment Fund (PIF) was considering a $1 billion minority stake in the company. However, PIF later clarified that it was not in talks to acquire a stake in DAZN.

This acquisition reflects DAZN’s ambition to strengthen its foothold in the sports streaming market, while News Corp pivots its focus to growth areas within its media portfolio.

Also Read: News Corp. considers sale of Foxtel amid rising Interest from buyers