News Corp and Telstra will sell Foxtel to global sports streaming giant DAZN for $3.4 billion, giving up control of its entire domestic and international sports rights portfolio including cricket, AFL and NRL.
DAZN, owned by Britain’s second-richest man Len Blavatnik, will take a majority stake in Australia’s pay-TV business, which includes the Kayo and Binge streaming services and the Hubbl set-top box, subject to regulatory approval.
Foxtel’s 4.7 million Australian customers do not expect any immediate changes to their subscriptions or pricing as a result of the deal, which is expected to close in the first half of 2025, a spokesman said.
Dan Barrett, a writer for TV industry newsletter Always Be Watching, said DAZN (pronounced “Da-zone”) will take over Foxtel’s rights to broadcast a range of sports events in Australia under the deal An important foothold, while bringing significant benefits to troubled Foxtel.
“DAZN jumped in and bought the rights to all the major sporting events in Australia,” Barrett said.
DAZN is backed by Ukrainian-born billionaire Blavatnik, who also controls businesses including Warner Music, home of Ed Sheeran, Dua Lipa and Megan Thee Stallion.
The company focused on European markets when it launched in 2016, but has expanded into 200 international markets since 2020, most recently purchasing exclusive streaming rights to the 2025 FIFA World Cup in December.
DAZN chief executive Shay Segev said the acquisition of Foxtel would further the company’s ambition to become the “home of global sports”.
“Australians watch more sports than any other country in the world, which makes this deal an incredibly exciting opportunity for DAZN,” he said.
Foxtel already has deals to broadcast the AFL, cricket and rugby league, with Segev saying he wants to export Australian sport around the world, with DAZN reporting it will reach 300 million monthly customers globally by 2023.
Foxtel has been a lucrative revenue generator for News Corp for decades, but the media company had sought to sell its pay-TV service amid growing competition from streaming services.
According to information disclosed in the August financial report, Australians have given up subscriptions to the Foxtel Now streaming service and switched to Kayo and Binge.
DAZN already broadcasts live international sports events including European football, boxing and the NFL in Australia through various subscription plans, and a Foxtel spokesperson said the company was considering introducing DAZN content to Australian customers in the future.
Its Binge platform will lose HBO programming in the first half of 2025 with the launch of Warner Bros. Discovery Channel streaming rival Max, which may add Foxtel’s sports programming.
“The emergence of a major international athlete is almost a perfect rescue for Foxtel’s business,” Barrett said. “It will enhance Foxtel’s position as a sports product and the future of Foxtel has always been sports.”
“In the next few years, we may see Foxtel abandon a lot of general entertainment and movies and move towards sports.”
Through the deal, Foxtel will repay News Corp’s $578 million in outstanding debt and Telstra’s $128 million in outstanding debt. News Corp will have a seat on DAZN’s board and take a 6% stake in the company, while Telstra will hold about 3%.
Under the deal, Foxtel will continue to be run by local chief executive Patrick Delany, who said he was grateful for News Corp’s support in reviving the platform.
“Today’s announcement is a natural evolution for the Foxtel Group,” he said. “[DAZN] They are experts in the sports media business and can play an important role in supporting Foxtel as its streaming capabilities increase.