On December 22, 2024, DAZN, the leading sports streaming platform, announced its agreement to acquire Foxtel Group from News Corp and Telstra for approximately US$2.2 billion, subject to regulatory approval. This significant acquisition is not only poised to solidify DAZN's position as the primary player in the Australian sports market but also expands its global footprint across the 200 territories where it operates.
With over 4.7 million subscribers, Foxtel is one of Australia’s foremost media companies, and the integration with DAZN aims to leverage its extensive sports content, technological capabilities, and viewer experience. Shay Segev, CEO of DAZN, expressed his enthusiasm for the deal, stating, 'Australians watch more sport than any other country in the world, which makes this deal an incredibly exciting opportunity for DAZN to enter a key market, marking another step in our long-term strategy to become the global home of sport.'
The acquisition marks DAZN's most significant move to date, aiming to increase its pro forma revenues toward US$6 billion. With Foxtel’s diverse offerings, including Australian Football League (AFL), National Rugby League (NRL), and cricket, DAZN is positioned to grow its audience by catering to local sports preferences and exporting Australian sporting events to international markets.
Foxtel, originally launched by News Corp in 1995, has faced challenges over the years, particularly as viewers transitioned to more affordable streaming options like Netflix. During its transformation, Foxtel launched its own services, including Kayo and Binge, seeking to reclaim market share for sports broadcasting. Siobhan McKenna, Executive Chairman of Foxtel, highlighted the deal as 'international recognition of the transformation of Foxtel from an incumbent pay TV operator to a sports and entertainment digital and streaming leader.'
The financial intricacies of the transaction involve the repayment of shareholder loans and refinancing of Foxtel's current debt upon closure of the deal, which is expected by the second half of 2025. Following the acquisition, News Corp and Telstra are set to hold minority stakes and maintain their involvement with the business. News Corp’s CEO Robert Thomson indicated, 'The deal would allow the company to focus on its core operations of Dow Jones, digital real estate and book publishing.'
Industry experts believe DAZN's arrival may lead to significant shifts within the Australian sports media market. Paul Budde, independent telco analyst, noted, 'Foxtel’s traditional premium pricing model has long been a point of contention, particularly in an era dominated by more affordable streaming alternatives.' This sentiment suggests DAZN’s potential competitive pricing might reshape consumer expectations and influence the pricing structure significantly.
Patrick Delany, CEO of Foxtel, remarked on the future collaboration with DAZN, expressing his excitement about the partnership: 'We are excited by DAZN’s commitment to the Australian market. They are experts in the sports media business and can play a significant role in supporting Foxtel as the business grows its streaming capabilities.' This outlook reflects optimism surrounding new strategies to attract subscribers by enhancing streaming offerings and viewership experiences.
Overall, the acquisition of Foxtel by DAZN signals not only the latter's determination to become the go-to destination for sports entertainment but also highlights the current trends reshaping the sports broadcasting industry. With streaming becoming increasingly prevalent and traditional models being challenged, companies are adapting to meet the desires of modern consumers.
This bold move by DAZN places it at the center of the sports streaming revolution, particularly within Australia, as it aims to create new viewing experiences for sports fans and explore broader markets with enhanced digital offerings.
