DAZN, a prominent player in sports streaming, is set to acquire Foxtel Group from News Corp and Telstra, with an enterprise value of $2.2 billion. This deal is currently pending regulatory approval. DAZN is owned by UK billionaire Len Blavatnik and provides the platform with a new shot at reaching Foxtel’s 4.7 million subscriber base, positioning itself as a global streamer.
Foxtel, originally Australia’s premier pay-TV service, covers local and international entertainment content. The services under Foxtel Group include Fox Sports and other sports production ventures. Their substantial customer base indicates the potential of the business.
The decision for DAZN to purchase Foxtel is a result of News Corp’s strategic and financial examination of Foxtel. This evaluation forms part of News Corp’s continuous endeavor to fine-tune its lineup and make the company’s structure more concise. Consequently, this agreement allows News Corp and Telstra to retain shares in Foxtel through DAZN as minority stakeholders.
It is projected that the transaction will close around mid-2025, given it earns regulatory approvals and fulfills other conventional finalizing terms. News Corp and Telstra’s minority shares in DAZN enable them to retain an interest in Foxtel, which can be beneficial to both parties.
Once the acquisition is through, Foxtel will keep its indigenous character. The existing management team will continue to steer Foxtel, says DAZN, thereby retaining its local foundation while opening up to a global audience.
Founded in 2016, DAZN has well over 3,000 staffers and reports a revenue of $3.2 billion in 2023. With Foxtel coming on board, DAZN’s combined pro-forma revenues could move towards $6 billion. This substantially augments DAZN’s financial strength.
The entry of Foxtel into DAZN’s framework is anticipated to position DAZN as a leading presence in Australia’s sports entertainment. Moreover, the expansion to Australia is expected to enhance DAZN’s global impact, according to the sports streaming company.
DAZN asserts that Australia leads the globe in sports viewership, making their entry into the Australian market an exhilarating chance for growth. It also marks another stride towards DAZN’s long-term ambition of becoming the global nexus of sports.
Foxtel, considered a thriving venture, has experienced an extraordinary digital transition in recent years. DAZN is optimistic that its international span and constant pursuit for innovation will foster Foxtel’s progress and secure long-term prosperity.
The divestiture of Foxtel to DAZN allows News Corp to visor its effort on growth pillars such as Dow Jones, Digital Real Estate, and Book Publishing. It also enables repayment of shareholder loans and an enhancement of the credit profile. News Corp expresses pride in forging a prolonged partnership with the talented team of DAZN.
As per the agreement, shareholder loans worth $361 million ($578 million Australian) outstanding to News Corp will be repaid in full by cash at closing. Foxtel’s current debt will be refinanced at closure and will transition along with Foxtel. This places News Corp as a minority shareholder in DAZN with a stake around 6%, providing them with a board seat as well.
Telstra will also have its shareholder loans of $80 million ($128 million Australian) settled. With approximately a 3% minority stake in DAZN, Telstra continues to have skin in the game, opening possibilities of further collaboration in future.
DAZN, often pronounced “da-ZONE,” streams more than 90,000 live sports events annually. Its accessibility spans over 200 global markets. An array of sports and leagues from around the globe such as European football, women’s football, boxing, MMA, NFL, Bundesliga, Serie A, LALIGA, Ligue 1, Formula 1, NBA, Moto GP and many others are part of its offering.
Adding Foxtel into its portfolio makes DAZN a major destination for sports enthusiasts. Not just for its current sports line-up, but also for future sporting events like the 2025 FIFA Club World Cup that would further expand its global influence.
Given these significant moves, DAZN seems poised to bolster its leadership position in the global sports streaming industry. The acquisition, coupled with Foxtel’s local leverage and expansive audience reach, promises a fresh facet of sports entertainment distribution.