News Corp Sells Foxtel to DAZN: A $2 Billion Streaming Shakeup

News Corp has agreed to sell its Australian cable TV unit, Foxtel, to DAZN for A$3.4 billion, marking a strategic withdrawal from traditional broadcasting in favor of digital platforms. The deal grants News Corp a board seat and a minority stake in DAZN, emphasizing the potential growth of streaming services in sports broadcasting.

In a strategic shift, News Corp has announced the sale of its Australian cable TV unit, Foxtel, to British sports network DAZN for A$3.4 billion, including debt. This transaction highlights the media giant's move away from traditional broadcasting towards digital streaming platforms, significantly trimming its exposure to an industry disrupted by services like Netflix.

DAZN, a rising competitor in the sports streaming market, broadcasts major European football leagues and American sports, positioning itself as a key player globally. "Australians' passion for sports aligns perfectly with our vision to become the global sports streaming leader," said DAZN co-founder and CEO Shay Segev, indicating a strong market opportunity.

Foxtel has struggled with declining profits due to costly sports rights and subscriber losses to cheaper alternatives. The deal allows News Corp to concentrate on its primary business in publishing and digital real estate, while DAZN aims to revolutionize Australian sports broadcasting with potential competitive pricing.

(With inputs from agencies.)