DAZN Scores Foxtel in A$3.4 Billion Deal

News Corp and Telstra are selling their Australian cable TV and streaming business, Foxtel, to DAZN for A$3.4 billion. This acquisition allows DAZN to expand into the sports-focused Australian market. News Corp will retain a 6% stake and Telstra 3% in the DAZN platform.

News Corp and Telstra have reached an agreement to sell their cable TV and streaming company, Foxtel, to the British sports platform DAZN. The deal values the struggling Australian business at A$3.4 billion, including debt.

The transaction includes full repayment of shareholder loans valued at A$578 million, with Foxtel's existing debt to be refinanced upon closing. Post-deal, News Corp will hold a 6% stake in DAZN, while Telstra will own 3%, as the platform seeks to expand its global presence under the leadership of billionaire Len Blavatnik.

The sale of Foxtel comes as a strategic move for News Corp amidst dwindling subscription numbers, with many consumers opting for more affordable streaming services like Netflix. The acquisition is a significant milestone for DAZN in its mission to become the preeminent global sports streaming service. Share prices for News Corp increased by 1% in early trading, while Telstra shares rose by 0.4%.

(With inputs from agencies.)