DAZN, the fast-emerging sports streaming platform, has announced its agreement to acquire the Australian media company Foxtel Group for $2.2 billion. This strategic move is poised to significantly expand DAZN's presence and coverage within the Australian market, thereby enhancing its global footprint and the ability to tailor content to local audiences.
The acquisition, which is subject to regulatory approval, brings DAZN's pro-forma revenues to nearly $6 billion. The deal is seen as pivotal not only for DAZN but also signals a transformative moment for Foxtel, which has built up its subscriber base to approximately 4.7 million. Shay Segev, CEO of DAZN, expressed his enthusiasm: “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.”
Buoyed by its successful digital transformation over the past few years, Foxtel is now set to amplify its services by integrating DAZN’s advanced technology and content offerings. “Foxtel is a successful business, having undergone a remarkable digital transformation,” Segev continued, emphasizing DAZN’s commitment to enhancing Foxtel's television and streaming capabilities across both sports and entertainment categories. “We are committed to supporting and investing in Foxtel’s television and streaming services.”
Foxtel Group CEO Patrick Delany echoed Segev's sentiments, stating, “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 positive outlook is underpinned by the key historical shifts Foxtel has made since merging Foxtel and Fox Sports, leveraging its strength as the largest Australian-based streamer of sports and entertainment.
The agreement will see both News Corp and Telstra retain minority stakes, with News Corp holding around 6% and Telstra approximately 3%, ensuring they remain involved with the regional media powerhouse. This aspect of the deal also signals potential future collaborations as DAZN considers wider acquisitions to solidify its market presence.
Executives are optimistic about the deal, citing it as part of Foxtel’s natural evolution. Delany remarked on the transformation, saying, “Over the last seven years, the Foxtel team... have achieved an extraordinary turnaround in an intensely competitive environment.” He emphasized how DAZN plans to build on Foxtel’s previous success, particularly with its streaming services like Kayo and Binge, which have been pivotal offerings for Australian sports fans.
Additionally, DAZN aims to export popular Australian sports to new global markets and continue its commitment to promoting women’s and under-represented sports. “We will continue to promote women’s and under-represented sports,” Segev confirmed, hinting at the broader significance of the acquisition not just for DAZN and Foxtel but for the Australian sporting scene as well.
While this acquisition marks DAZN's official foray beyond its traditional pay-TV aspects, it places Foxtel at the forefront of the changing dynamics within the local media industry. Legacy operators are paying close attention, as the move could embolden future consolidations within the sector.
Despite the challenges faced by the Australian content industry—intensified competition from global streaming services—there remains confidence surrounding DAZN’s acquisition. A spokesperson noted, “DAZN is focused on minimizing disruption, growing the business, and maintaining its financial performance,” implying stability amid industry shifts.
With both executives from DAZN and Foxtel expressing their shared vision for the future, the future looks promising for this newly united front. They aim to maintain Foxtel's renowned slate of local content alongside DAZN’s international sports rights, putting them on the path to becoming formidable leaders in the competitive streaming market.
