News Corp has announced the sale of its Australian cable TV business, Foxtel, to London-based sports streaming network DAZN for AUD 3.4 billion ($2.1 billion), including debt. The deal signals a shift for Rupert Murdoch’s media empire as it reduces exposure to traditional TV disrupted by streaming platforms.
As part of the agreement, News Corp will gain a board seat and retain a 6% stake in DAZN, while the British-owned network acquires Foxtel’s valuable streaming rights to the Australian Football League (AFL) and National Rugby League (NRL). This acquisition positions DAZN, already a global player in sports broadcasting, to strengthen its foothold in the competitive Australian market.
The valuation of Foxtel—seven times its projected 2024 earnings before interest, tax, depreciation, and amortization (EBITDA)—exceeded expectations, according to Brian Han, an analyst at Morningstar. “It’s a significant outcome of News Corp’s prolonged corporate review, addressing concerns among investors,” Han said.
DAZN, owned by billionaire Len Blavatnik through his New York-based investment firm Access Industries, operates in North America, Europe, and Asia. The platform offers diverse sports coverage, including boxing, baseball, and European football, and has partnerships with major leagues like Serie A, La Liga, and the Bundesliga.
Foxtel, established in 1995, has faced challenges as audiences migrate to more affordable streaming services such as Netflix. To adapt, Foxtel launched its own streaming platforms, including Kayo, which features live coverage of AFL, NRL, and international sports content via partnerships with channels like ESPN. However, rising sports broadcasting costs and declining revenue have pressured the company to share broadcasting rights with free-to-air networks.
Despite its efforts, the premium pricing model has drawn criticism. Independent telecommunications analyst Paul Budde suggested that DAZN’s entry into Australia could disrupt the market by offering competitive pricing, reshaping consumer expectations.
News Corp CEO Robert Thomson highlighted that the sale would enable the company to focus on core businesses such as Dow Jones, digital real estate, and book publishing. News Corp owns 61.4% of online real estate platform REA Group and publisher HarperCollins.
Foxtel CEO Patrick Delany will remain in his role, and shareholder loans worth AUD 578 million will be repaid in full, with the company’s current debt refinanced. Telstra, which owned a 35% stake in Foxtel, also sold its share to DAZN, receiving AUD 128 million in cash and a 3% stake in the network.
The deal is expected to close in the second half of 2025. Following the announcement, News Corp shares rose 3.5% to AUD 50.79, outperforming the broader market, while Telstra shares gained 1.1%.
