A major shift is underway in the Australian media and sports streaming landscapes as DAZN, the global sports streaming service, has announced its acquisition of the Foxtel Group from News Corp and Telstra for $3.4 billion. This transformative deal marks the end of News Corp's majority ownership of Foxtel, which has been one of the key players in Australia’s media sector since its inception nearly 30 years ago.
DAZN's acquisition, announced on [specific date required], will bring Foxtel, with its 4.7 million subscribers, under the umbrella of the UK-based streaming giant, which is known for its extensive sports offering ranging from boxing to European football.
The acquisition not only consolidates DAZN’s standing as a premier sports entertainment provider but also enhances its footprint within Australia, where sports viewership is at its highest globally. DAZN CEO Shay Segev remarked, “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.”
With the deal expected to close by mid-2025, subject to regulatory approvals, DAZN will inherit Foxtel’s streaming services, Kayo and Binge. This development seeks to fortify the brand’s capabilities, leveraging Foxtel’s existing infrastructure and local management under CEO Patrick Delany.
News Corp CEO Robert Thomson described the deal as “a victory for News Corp shareholders, DAZN, and sports fans.” This shift allows News Corp to focus on its other growth areas such as Dow Jones and digital real estate ventures.
Foxtel, initially formed as a partnership between Telstra and News Corp back in 1995, had to innovate over the years to stay relevant as competition intensified from giants like Netflix and Amazon Prime. The company's recent endeavors included launching streaming platforms Kayo and Binge, aimed at reclaiming market share lost to more agile platforms. Kayo has quickly grown to become one of Australia’s notable sports streaming services.
The backdrop of the sale includes turbulent times for traditional TV, trying to navigate away from cable subscriptions toward streaming platforms. While Foxtel retains considerable subscribers, this acquisition by DAZN could be seen as necessary not just for growth, but survival, amid the increasing competition.
Both News Corp and Telstra will keep minority stakes following the sale, with News Corp holding around 6% and Telstra approximately 3%. The sale also involves the repayment of significant loans from both companies. News Corp will receive $578 million and Telstra will be paid back $128 million.
The significance of this deal stretches beyond just the financial aspects; it signifies the continuous evolution of Australia’s media ecosystem. DAZN is not just acquiring content; it is absorbing market potential and leveraging the legacy and reputation Foxtel has established over the years.
Experts, such as veteran analyst Paul Budde, have suggested this acquisition could fundamentally redefine sports broadcasting access and services, offering improved services to consumers. DAZN’s established global capabilities and commitment to innovation present promising prospects for future growth.
Foxtel CEO Patrick Delany emphasized the continuity of local operations, stating, “We will remain a proudly Australian-based business, led by local management, committed to delivering locally-produced sports and entertainment content for our audiences.” He highlighted the investments and technological advancements DAZN brings to the table, which could provide Foxtel with the competitive edge necessary to thrive as user preferences continue to evolve.
For the sports fan, this deal entails not just more content but potentially enhanced offerings like improved viewing experiences and access to international sports events. DAZN's portfolio already includes rights to major leagues and sports competitions, promising to add the likes of AFL and NRL to its catalog, which could ripple through the Australian sports market.
Despite the excitement surrounding the integration of platforms, questions about the future remain. Will the Foxtel brand sustain its identity under DAZN's ownership? What will become of the traditional broadcast services as the streaming wars heat up? And how will this acquisition affect existing broadcast rights, particularly the NRL’s deals which are up for renegotiation as the team gears up for new seasons?
The impending changes and strategic decisions mark not just an evolution for Foxtel, but also signal DAZN's ambitious plans to position itself as the leading sports streaming service, both within Australia and globally.
DAZN’s growth strategy is clear, focusing on capitalizing on local market strengths as they aim to cater to Australia’s vast sports audience effectively. While adjustments will be inevitable, the hope is for both companies to emerge stronger, setting new standards for sports viewers across the nation.
