News Corp Offloads Foxtel to DAZN in $2.1 Billion Deal

News Corp is selling its Australian cable and streaming service Foxtel to DAZN for A$3.4 billion, including debt. As part of the deal, Foxtel's debt will be refinanced, and News Corp will own a 6% stake in DAZN. Telstra will also sell its 35% stake in Foxtel.

In a significant media industry move, Rupert Murdoch's News Corp announced the sale of its Australian cable and streaming division, Foxtel, to British sports streaming platform DAZN. The deal, valued at A$3.4 billion (equivalent to $2.1 billion), encompasses Foxtel's existing debt.

This strategic transaction will see News Corp retaining a 6% stake in DAZN, a company under the ownership of billionaire Len Blavatnik. The divestment allows News Corp, recognized for its prominent publications like the Wall Street Journal, to steer clear of the challenges posed by traditional subscription models in an age of streaming giants like Netflix.

Further, telecommunications giant Telstra will offload its 35% stake in Foxtel, emerging with a 3% stake in DAZN. The acquisition, pending regulatory clearance, is expected to finalize in the latter half of fiscal 2025, meanwhile shares of News Corp and Telstra have reacted positively to the announcement.

(With inputs from agencies.)