Foxtel sale gets tick of approval from the Foreign Investment Review Board
The sale marks the end of News Corp’s 30-year ownership of Foxtel, which was launched as a pay-TV service in 1995 and evolved into an integrated subscription streaming operation.
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Global streaming firm DAZN has formally acquired News Corp’s Foxtel in a $3.4bn deal that will reshape Australia’s media and sport landscape.
Joint owners News Corp and Telstra agreed to sell Foxtel to DAZN on December 23, following months of speculation about the probable transaction.
On Wednesday it was announced that after conducting a three-month assessment of the proposed acquisition, the Foreign Investment Review Board has approved the deal.
The sale marks the end of News Corp’s 30-year ownership of Foxtel, which was launched as a pay-TV service in 1995 and evolved into an integrated subscription streaming operation.
Under the terms of the deal, News Corp will hold a 6 per cent stake in DAZN, plus a seat on the board, which will be occupied by News Corp’s senior vice-president and deputy chief financial officer, Andrew Cramer.
Cramer, who joined News Corp in 2019 as Senior Vice President of Corporate Finance, was promoted to Deputy CFO in July 2022. Prior to his tenure at News Corp, he led Citibank Australia’s TMT investment banking division.
Telstra will claim 3 per cent of DAZN.
News Corp and Telstra owned 65 per cent and 35 per cent of Foxtel respectively before the sale to DAZN.
In a statement to the ASX on Wednesday, News Corp global chief executive Robert Thomson noted the “extra capital strength and optionality” that the deal has given the media company.
“Foxtel’s successful transformation to becoming a leading provider of sports and entertainment is a result of the team’s tenacity, creativity and professionalism,” he said.
“We are confident that DAZN is poised to drive the next phase of Foxtel’s growth and we are delighted to be DAZN’s partner and shareholder.
“And we are pleased to have extra capital strength and optionality.”
News Corp chief financial officer Lavanya Chandrashekar said the sale was “significant for News Corp, and will enable greater focus on our core growth pillars”.
“It will also meaningfully strengthen our balance sheet, and should reduce future capital intensity and improve return on invested capital,” she said.
In an email to staff, News Corp Australasia executive chairman Michael Miller said: “Australian sport has been a core part of our business for more than 50 years and remains central to our future.”
“Sport is – and will remain – a priority for us,” he said.
Mr Thomson first hinted last August that Foxtel was on the market, telling analysts that the sports and entertainment company – which has streaming platforms BINGE and Kayo among its assets – had attracted interest from potential buyers.
All the Fox Sports operations will move across to DAZN as part of the deal, although Sky News Australia will continue to be owned by News Corp and will be broadcast by Foxtel.
Foxtel will use part of the proceeds of the sale to repay its $592m debt to News Corp, as well as a smaller loan to Telstra.
Foxtel has the subscription and streaming rights to the AFL until the end of 2031, as part of a record $4.5bn deal with the league that also involves free-to-air broadcaster Seven and Telstra. Foxtel’s current broadcast deal with NRL goes through to the end of the 2027 season, with talks for a new deal underway.
Shay Segev, CEO of DAZN, said: “Foxtel’s strong local presence, combined with DAZN’s global scale, technology, and content rights, will unlock incredible opportunities for sports fans, advertisers, and partners, while continuing to deliver great drama, lifestyle and news content.”
Foxtel Group chief executive Patrick Delany said: “DAZN’s ownership allows the Foxtel Group to remain an Australian-based business, with an Australian team and the sport, drama and entertainment that Australians love.”
The platform holds domestic rights to premier football leagues such as Italy’s Serie A, Spain’s La Liga, Germany’s Bundesliga, and Japan’s J.League. Additionally, DAZN offers global boxing content through partnerships with entities like Matchroom and Golden Boy.
In 2025, DAZN acquired exclusive global rights to the FIFA Club World Cup, underscoring its strategy of delivering major sports events worldwide.
News Corp is the publisher of The Australian.
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Originally published as Foxtel sale gets tick of approval from the Foreign Investment Review Board
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