British streamer closes in on Foxtel

News Corp is edging closer to securing a deal for its pay TV and streaming group Foxtel with the billionaire-backed streaming platform DAZN, potentially taking the company that broadcasts the AFL and the NRL into foreign ownership.

Having put the business up for sale publicly in August, News Corp is in late-stage negotiations with DAZN, a sports streaming business backed by British-Ukrainian billionaire Len Blavatnik.

DAZN is backed by British-Ukrainian billionaire Len Blavatnik.Credit: Getty Images

DAZN, which broadcasts the NFL, MMA and UEFA Women’s Champions League in Australia, emerged as the likely buyer for Foxtel after talks broke down between News Corp and US private equity firm Platinum earlier this year over the former’s unrealistic asking price.

The deal to sell Foxtel for an undisclosed sum could be completed before Christmas, three sources with knowledge of the deal said. Foxtel’s debt load is about $1.2 billion. The news was first reported by Capital Brief.

The streamer has enlisted the Bank of America for advice on the potential deal, The Australian Financial Review’s Street Talk column reported following the publication of this story.

DAZN is a major player in sports streaming in markets across the world, broadcasting different competitions including the English Premier League, American NBA and German Bundesliga, and is one of the largest pure-play sports streaming platforms in Europe.

Locally, Foxtel holds the broadcast rights for the AFL, NRL, cricket and other major international sports. It has secured the rights to the AFL and cricket until 2031, while the NRL is looking to secure a new broadcast rights deal beginning in 2027.

News Corp was approached for comment. A DAZN spokesperson declined to comment.

Foxtel also owns the traditional and once-dominant set-top boxes as well as entertainment streaming service Binge and recently launched streaming aggregation platform Hubbl.

The deal would be the second major outlay for DAZN in a matter of weeks after it was confirmed by FIFA as the global broadcaster partner for its revamped Club World Cup last week, set to be held across June and July in 2025. It is part of DAZN’s strategy to expand its footprint, using the competition to drive sign-ups as it will be broadcast free.

However, the deal with FIFA has raised eyebrows, given the $1 billion DAZN is paying to the global footballing body to help it avoid a potentially embarrassing launch for the expanded event, after mainstream and traditional media companies reportedly baulked at FIFA’s unrealistic asking price.

Blavatnik is one of the world’s richest men, with an estimated net worth of $46 billion. DAZN is run by Shay Segev, formerly chief executive of British gaming firm Entain, which operates Ladbrokes in Australia.

DAZN has also been rumoured to be strengthening ties with Saudi Arabia for some time. It recently signed a deal to broadcast the Saudi Pro League in several major international markets. The Saudi Public Investment Fund (PIF), which is chaired by Crown Prince Mohamad bin Salman, has been heavily linked to a deal to buy a 10 per cent stake of DAZN, which would value the company at $1 billion.

DAZN has haemorrhaged cash over the past few years, with its 2023 accounts expected to be filed in London later this month. It reported about $1.5 billion in operating losses in 2022. It could be offered a lifeline through the Saudis.

Investing in Foxtel, a company with several long-term structural challenges, is unlikely to DAZN’s financial struggles. However, it would transform the company into the dominant sports streaming outfit in Australia overnight.

DAZN chief Segev was open about the company’s intent to find new partners or investors last year, but the PIF recently rejected reports that a deal to acquire a stake in DAZN is imminent.

“PIF is not currently engaged in discussions with DAZN on this matter and has no current plans to invest in the company,” a spokesperson for PIF said in October.

The PIF owns the four major football teams in Saudi Arabia, has made a bid to purchase both men’s and women’s professional tennis bodies the ATP and WTA earlier this year, and has invested heavily in Formula 1.

The PIF also owns English Premier League club Newcastle United, and is also expanding into golf with its controversial LIV competition, which is set to merge with the PGA next year.

Saudi Arabia is expected to be announced as the host of the 2034 FIFA World Cup this week after running an uncontested campaign.

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