News Corp Sells Foxtel to DAZN

(Reuters) – Rupert Murdoch's News Corp (NASDAQ:NWSA) announced on Monday that it will sell its Australian cable TV and streaming unit, Foxtel, to the British over-the-top sports streaming platform DAZN for A$3.4 billion ($2.1 billion), inclusive of debt.

Deal Details

As part of the agreement, Foxtel's current debt will be refinanced upon closing. News Corp will retain a 6% stake in DAZN, a London-based global streaming platform supported by billionaire Len Blavatnik.

This transaction helps News Corp, which owns notable print publications like the Wall Street Journal, extricate itself from an asset that has struggled in the streaming-dominated landscape, particularly against competitors like Netflix (NASDAQ:NFLX).

Foxtel has negatively impacted News Corp's profits for years, with fewer individuals opting for its monthly subscription services as they shift to more affordable streaming options. To adapt, Foxtel has itself launched a less expensive streaming service compared to its traditional offerings.

As part of the sale, News Corp will gain one board seat at DAZN, which was established in 2016 and is striving to position itself as a global streaming competitor to entities like Apple (NASDAQ:AAPL) TV.

News Corp hinted at a potential sale of Foxtel back in early August following interest.

Telstra's Role

Australian telecommunications company Telstra (OTC:TLGPY) will also be selling its 35% stake in Foxtel for A$128 million, equating to a 3% stake in DAZN post-transaction.

The deal awaits regulatory approval and is anticipated to close in the second fiscal quarter of 2025.

In early trading, ASX-listed shares of News Corp saw a 1% increase, reaching A$49.65, while Telstra's shares rose by 0.4%, benefiting from a positive market trend.

($1 = 1.5997 Australian dollars)