Sports streaming platform DAZN has acquired Australian broadband firm Foxtel Group from majority shareholder, Rupert Murdoph’s News Corp, and minority shareholder, Telstra, in a deal valued at $2.2 billion.
The acquisition, pending regulatory approval and estimated for completion through the second half of fiscal 2025, establishes the sports activities leisure platform as a frontrunner in its area within the Australian market, moreover enhancing its international attain and footprint. Per the press launch from DAZN, the addition of Foxtel brings the group’s pro-forma revenues towards $6 billion and offers additional content material, experience and enlargement alternatives for its development trajectory.
Foxtel is one in every of Australia’s main media firms, with 4.7 million subscribers, who will acquire entry to DAZN’s portfolio of sports activities content material. From its beginnings as Australia’s authentic pay tv firm, Foxtel has developed to grow to be a digital and streaming chief in sports activities and leisure; the proposed transaction thus cements Foxtel as a digital-first, streaming-focused enterprise. Led by CEO Patrick Delany, the corporate will “maintain its local character,” in addition to its present administration group.
DAZN goals to develop the worldwide viewers for home Australian sports activities throughout the 200 territories through which it’s out there. Under the phrases of the deal, News Corp and Telstra (Australia’s largest cell community) will grow to be minority shareholders in DAZN, enabling them to retain an curiosity in Foxtel. News Corp’s minority fairness curiosity is roughly 6%, and the corporate will retain one seat on its Board of Directors. Meanwhile, Telstra’s stake in DAZN is roughly 3%.
Per News Corp’s announcement, shareholder loans within the quantity of A$578 million excellent and owing to News Corp shall be repaid in full in money at closing. Foxtel’s present debt shall be refinanced at closing and switch with Foxtel. Telstra may even have its shareholder loans of A$128 million repaid.