DAZN, the leading sports streaming platform, has officially announced its acquisition of Foxtel, the Australian pay-TV operator, from Rupert Murdoch’s News Corp for A$3.4 billion (approximately $2.1 billion), including the repayment of debts. This strategic move, confirmed on December 23, 2024, marks a significant milestone in the evolution of broadcasting and streaming services not only for Australia but also for the global sports viewing audience.
The agreement stipulates full repayment of shareholder loans amounting to A$578 million (nearly €336m) to News Corp, as well as refinancing Foxtel’s current debts. Following the closure of the deal, which is expected to take place during the second half of fiscal 2025, News Corp will retain about 6% of DAZN and secure one seat on its Board of Directors. Prominent telecommunications provider, Telstra Group Ltd, will similarly divest its minority interest in Foxtel and will be compensated with A$128 million and 3% equity stake in DAZN.
According to News Corp’s CEO Robert Thomson, this agreement is not only beneficial for their shareholders and DAZN but also offers advantages to sport fans across Australia and the world. He stated, “Foxtel has been transformed... and we believe DAZN is the right owner to take the business to the next level...” This assertion highlights News Corp’s confidence in DAZN’s capability to utilize its global network and technology to bolster Foxtel's services.
Shay Segev, co-founder and CEO of DAZN, echoed similar sentiments, emphasizing the rich sports culture within Australia. “Australians watch more sport than any other country... which makes this deal an incredibly exciting opportunity for DAZN...” He added, “Foxtel is a successful business... and we are confident our global reach and relentless pursuit of innovation will drive the business forward.” This sentiment reflects DAZN's commitment to enhancing Foxtel's offerings and continuing its digital transformation.
The terms of the acquisition reflect the urgent need for traditional media firms to adapt to the rapidly changing broadcasting environment, where consumer preferences have shifted toward more affordable, on-demand streaming services over conventional pay-TV models. Foxtel, which was launched by News Corp back in 1995, has struggled to maintain profitability amid fierce competition from platforms like Netflix.
Independent telecommunications analyst Paul Budde pointed out the historical challenges faced by Foxtel with its high pricing models, which often fail to meet the expectations set by newer, more cost-effective streaming services. He stated, “Foxtel’s traditional premium pricing model has long been contentious... DAZN’s entry... could dramatically shift consumer expectations and reshape the pricing terrain.”
The potential for this acquisition to change the competitive dynamics of the Australian sports broadcasting market is significant. Foxtel has previously shared rights with free-to-air broadcasters to mitigate rising costs, especially for sports rights, which have ballooned. Currently, Foxtel holds lucrative contracts for Australian Football League and National Rugby League broadcasting rights, reflecting its substantial role playing within the country’s sports media space.
Both DAZN and its executives have vowed to uphold and prioritize the quality of Foxtel's services. With the expertise found within DAZN’s technological capabilities, they aim to capitalize on Australia’s immediate sports market. Patrick Delany, CEO of Foxtel, expressed enthusiasm for the future stating, “We are excited to...embark on the next chapter with DAZN... as our new shareholder.” He reassured both staff and customers of their commitment to maintain an Australian business focus under local management.
Looking forward, the acquisition clearly positions DAZN as a formidable force within the Australian sporting arena, providing extensive access to sports rights and potentially reshaping consumer expectations. The transaction is also subject to necessary regulatory approval from Australia's Foreign Investment Review Board (FIRB), emphasizing the strategic scrutiny of foreign investments within local markets.
Overall, as the deal transitions toward finalization, the fate of Foxtel within the hands of DAZN raises both anticipation and questions about the future of sports broadcasting and how traditional models will coexist with rapidly modernizing platforms.
