Global sports streamer DAZN (‘Da Zone’) has completed its $3.4 billion acquisition of the Foxtel Group from News Corp and Telstra.
Foxtel will now be known as “a DAZN Company,” but will continue to operate as a standalone business, and Foxtel, Kayo Sports, Binge and Hubbl will retain their brand identities. There will be a phased integration process of the business.
DAZN streams 90,000 live events annually and is available in more than 200 markets. It is the home of European football, women’s football, boxing and MMA and the US’s NFL internationally, as well as the Bundesliga, Serie A, LALIGA, Ligue 1, Formula 1, NBA, Moto GP, and the 2025 FIFA Club World Cup.
The company announced its plans to take over Foxtel, previously owned 65 per cent by News Corp and 35 per cent by Telstra, in late December last year.
The deal was finalised following the approval of the acquisition by the Foreign Investment Review Board, ACCC and other regulatory authorities.
The sale saw $592 million in shareholder loans repaid to News Corp, which will take a minority equity interest in DAZN of approximately 6 per cent. News Corp senior vice president and deputy chief financial officer Andrew Cramer has also joined the DAZN board. Telstra is also to take a minority stake in DAZN of approximately 3 per cent.
“This is an exciting day for DAZN and Foxtel Group and a significant milestone for DAZN as we expand our global footprint into Australia, a key sports market with passionate fans,” said DAZN CEO Shay Segev.
“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 CEO Patrick Delany continues in his role, stating the DAZN takeover allows the Foxtel “to remain an Australian-based business, with an Australian team and the sport, drama and entertainment that Australians love”.
“As part of DAZN, we now benefit from their global scale, their leading technology platform and their track record in innovation that will allow us to more effectively compete with the global streaming giants.
“A big part of what drives us at Foxtel is bringing the best sports and the best sports production to our subscribers. We now have the opportunity to take the AFL and NRL, our two largest and most iconic Australian sports, to a massive global audience. For our Australian subscribers, it creates the opportunity to enjoy even more of the world’s best sports.”
News Corp chief executive Robert Thomson said Foxtel’s transformation to a leading provider of sports and entertainment – it has 4.7 million subscribers – is a result of the team’s “tenacity, creativity and professionalism”.
“Foxtel employees should be proud of their contribution to that success in the ultra-competitive content contest,” 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.”