Foxtel sold to sports streamer DAZN in blockbuster $3.4bn deal

Foxtel has been sold in a blockbuster $3.4 billion deal set to shake up Australia’s media and sport landscape.

Foxtel will be sold to UK based sports streamer DAZN for $3.4 billion in a blockbuster deal set to shake up Australia’s media and sports landscape.

The landmark agreement ends News Corp’s 30-year ownership of Foxtel, which launched in 1995 and has in recent years transformed into a streaming powerhouse.

Foxtel's junior ownership partner Telstra is offloading its 35 per cent stake as part of the sale.

All Fox Sports operations will move across to DAZN. Sky News Australia will continue to be owned by News Corp and operated by Foxtel.

Under the terms of the deal, Foxtel will repay a $578m loan to News Corp in full and a smaller loan to Telstra.

Foxtel will take a six per cent stake of DAZN and have a seat on DAZN’s board. Telstra will have a three per cent stake in DAZN.

The sale was first floated earlier this year when News Corp’s global chief executive Robert Thomson said the growth of Foxtel’s streaming arms, Kayo and BINGE, had attracted interest from potential buyers.

The sale is expected to go through in the second half of fiscal 2025.

Mr Thomson said on Monday: “With technological expertise and an impressive catalogue of international sports rights, DAZN will bolster Foxtel’s long-term prospects as a leader in sports and entertainment in Australia and around the world.

Foxtel CEO Patrick Delany has welcomed the sale to DAZN.

“The sale to DAZN is a testament to the collective dedication that will surely fashion Foxtel’s fortunes far into the future.

“DAZN’s Chief Executive Officer Shay Segev and his team will work closely with Foxtel’s Chief Executive Officer Patrick Delany and colleagues across the business to develop the company’s distinctive Australian character and to deliver locally-produced sports and entertainment content.”

DAZN is owned by London-based billionaire Sir Leonard Blavatnik.

The streaming platform has the rights to boxing fights in the US, UK and Saudi Arabia — most recently the heavyweight rematch between Tyson Fury and Oleksandr Usyk on the weekend.

DAZN broadcasts the NFL, MMA and the UEFA Women’s Champions League in Australia. It also has football rights for Italy’s Serie A, Germany’s Bundesliga and Spain’s La Liga.

It recently paid around US$1bn for the exclusive global rights to next year’s revamped FIFA Club World Cup.

DAZN’s acquisition of Foxtel puts the streamer in a position to challenge global streamers like Apple, Netflix and Amazon, as well as Disney’s ESPN, for sports rights.

David Warner at this summer’s Fox Cricket and Kayo Sports launch in Melbourne. Picture: Jake Nowakowski

Foxtel has invested billions in Australian sport over the years, particularly the AFL and NRL.

Foxtel’s current $4.5 billion AFL broadcast deal with Channel 7 runs until the end of 2031, with Fox Footy set to have expanded AFL coverage in 2025.

The current NRL rights deal will continue until the end of 2027. Talks about a new NRL broadcast deal are expected to begin in the new year.

Foxtel is a broadcast partner of cricket and Supercars and in 2022 it acquired the rights to Super Netball.

The current NRL broadcast deal runs to the end of 2027. (Photo by Cameron Spencer/Getty Images)

Fox Sports and Kayo is the only place in Australia to watch every Formula One race.

Foxtel has 4.7 million subscribers, including 1.6 million for Kayo and 1.55 million for BINGE.

Foxtel has transformed in recent years to bolster its digital and streaming focus, launching Kayo in 2018 and BINGE in 2020.

BINGE success stories including local Australian dramas The Twelve, Wentworth and Colin From Accounts.

BINGE has also streamed global hits such as Succession, Industry, The Penguin, Euphoria, The White Lotus, Day of the Jackal.

Foxtel’s entertainment arm BINGE has a large subscriber base. (Photo by Brendon Thorne/Getty Images for AFI)

Foxtel CEO Patrick Delany said: “This acquisition is a significant step forward in the Foxtel Group’s transformation as a leading sports and entertainment streaming provider in Australia.

“We are excited to be joining the DAZN family and to have them backing the Foxtel Group‘s strategy and our team. It means we will remain a proudly Australian-based business with local character, local management and local sports and entertainment production.

“DAZN is a global leader in sports, and being part of a dynamic global streaming group will create new growth options for the Foxtel Group and new value for subscribers and partners.

“When the transaction completes next year, DAZN’s ownership will provide us with access to global reach and the infrastructure and technology to support our continued transformation and allow us to continue to compete effectively with the global streaming giants.

“We are grateful to News Corp and Telstra for their unwavering support over the past 30 years.”

UK based streamer DAZN is taking over Foxtel. (Photo by DENIS CHARLET / AFP)

Shay Segev, Chief Executive Officer of DAZN, said: “Australians watch more sport than any other country in the world, which makes this deal an incredibly exciting opportunity for DAZN to enter a key market, marking another step in our long-term strategy to become the global home of sport.

“Foxtel is a successful business that has undergone a remarkable digital transformation in recent years, and we are confident that our global reach and relentless pursuit of innovation will continue to drive the business forward and ensure its long-term success.

“We are committed to supporting and investing in Foxtel’s television and streaming services, across both sports and entertainment, using our world-leading technology to further enhance the viewing experience for customers.

“We are also committed to using our global reach to export Australia’s most popular sports to new markets around the world, just as we have done with the NFL, and we will continue to promote women’s and under-represented sports.

“We’re looking forward to working closely with Patrick Delany and his team, as well as News Corp and Telstra as shareholders in DAZN, to realise our ambitious vision for the future of sport entertainment.”

News Corp is the owner of news.com.au.

Originally published as Foxtel sold to sports streamer DAZN in blockbuster $3.4bn deal