News Corp Sells Foxtel Group to DAZN for A$3.4 Billion

Investing.com– News Corp (NASDAQ:NWSA) announced on Monday its decision to sell its Australian television unit, Foxtel Group, to the British sports streaming platform DAZN Group for an enterprise value of A$3.4 billion ($2.1 billion).

The sale comes as Foxtel, once a dominant player in Australia, faces growing competition in the streaming landscape, particularly from Netflix (NASDAQ:NFLX).

News Corp indicated that this sale is part of its strategy to streamline operations and enhance "long-term shareholder value."

As part of the transaction, News Corp will retain a 6% stake in DAZN and hold a position on its board of directors. In addition, shareholders will recuperate loans totaling A$578 million in cash after the deal's conclusion.

Australian telecommunications giant Telstra (OTC:TLGPY) will also divest its minority interest in Foxtel in exchange for a 3% stake in DAZN, along with receiving A$128 million in shareholder loan repayments.

This sale follows News Corp’s indication in August that it was contemplating offloading Foxtel, which has experienced a steady revenue decline due to increased competition from various streaming platforms. While Foxtel has launched its own streaming services, these efforts have not significantly countered the overall decline in its sales.

The deal requires regulatory approval and provides DAZN with entry into the Australian market, which the streamer views as critical.