DAZN, the prominent sports streaming platform, is set to acquire Foxtel Group, marking a pivotal moment for the Australian media industry and enhancing the local sports broadcast experience. The deal, which is valued at A$3.4 billion, will see DAZN take complete ownership of Foxtel, including its subscription television services and streaming platforms like Kayo and Binge.
According to The Australian Financial Review, this acquisition is expected to bolster Foxtel's offerings, providing its subscribers with greater access to international sports and solidifying its position against global streaming competitors. The deal is expected to close in the second half of fiscal 2025, pending regulatory approvals and other customary closing conditions. The acquisition reflects DAZN's strategic focus on becoming the global home of sports entertainment.
“This acquisition is a significant step forward for the Foxtel Group’s transformation as we evolve to meet the needs of modern viewers,” said Foxtel Group CEO Patrick Delany, who will remain at the helm after the transition. Delany expressed excitement about the future, noting, “We will continue to be a proudly Australian-based business with local character, local management, and local sports and entertainment production.”This commitment to local production is likely to address concerns about maintaining Australian content amid the changes.
DAZN’s Chief Executive Officer, Shay Segev, highlighted the strategic importance of this acquisition, remarking, “Australians watch more sport than any other country, which makes this deal incredibly exciting as it allows DAZN to enter a key market.” Segev emphasized the company's ambition to provide local viewers with enhanced sports content and leverage DAZN's global reach to bring Australian sports to international audiences.
The acquisition not only signifies DAZN's intent to expand its footprint within Australia but also positions Foxtel as part of a larger global network capable of competing with the increasing dominance of global streaming services like Netflix and Amazon Prime Video. DAZN's financial backing, mainly funded by Access Industries, led by billionaire Len Blavatnik, will support Foxtel's infrastructure development and strategic initiatives.
Robert Thomson, chief executive of News Corp, which has been heavily involved with Foxtel, described the acquisition as beneficial for shareholders and sports fans alike. He noted, “This is not just about the financial transaction; it is about enhancing the sports viewing experience and the future of sports media.”
The proposed deal values Foxtel as a streaming-led business, indicating strong financial health with expectations of continued revenue growth. The deal brings with it the challenge of integrating Foxtel's existing services with DAZN's platform. While challenges remain, including how to handle Foxtel’s widely popular sports broadcasting rights, such as the AFL and NRL, the intentions are clear: DAZN plans to invest significantly to optimize content delivery.
Currently, Foxtel is home to approximately 4.7 million subscribers and has established itself as one of Australia's leading media companies. With services spread across sports production, streaming, and digital advertising, it is poised to capitalize on the coming changes. Notably, DAZN’s acquisition is not without competition; various parties had vested interests including Telstra, which holds a minority stake of 35%.
News Corp and Telstra's decision to sell Foxtel was driven by competitive pressures within the market as streaming services continue gaining momentum. Telstra will receive A$128 million from the deal, aiming to pay down loans. Both News Corp and Telstra will retain minority stakes—6% and 3%, respectively—in DAZN moving forward, allowing them to stay engaged with the progression of the services.
Analysts argue this acquisition is transformative, potentially setting the stage for another competitor to disrupt the market. Particularly, the future integration of Foxtel’s assets with DAZN could provide unprecedented access to sports rights on both local and international levels.
DAZN’s brand identity as one of the largest sports streaming platforms globally draws attention to its capability to support Foxtel's ambitions. The acquisition signals not just financial growth, but also aims to expand sporting content and viewing options for Australian audiences. The goal is to not only cater to the already engaged Australian sports fanbase but reach beyond local borders, exporting Australian sports content globally.
For DaZN, this acquisition serves as part of its long-term vision to provide consumers with seamless access to sports content, akin to services provided by giants like Netflix and Spotify. Balancing the costs and potential of such expansion remains to be seen, especially as DAZN has recorded significant losses recently, stirring concerns over sustainability.
Despite these financial uncertainties, the strategic motives and unwavering enthusiasm surrounding DAZN's acquisition of Foxtel Group promise exciting developments for sports broadcasting and viewing experiences across Australia. With the deal moving forward, the future of sports consumption appears to be poised for dramatic changes.
