News Corp and Australian telecom company Telstra have agreed to sell their Australian cable TV and streaming company Foxtel, a deal that values the pay television company at more than $2.1 billion.
The Wall Street Journal reports News Corp on Sunday evening said the sale of Foxtel, in which it holds a 65% stake, will allow the company to narrow its focus on its key growth areas—Dow Jones, digital real-estate services and book publishing.
As part of the deal, News Corp will receive an approximately 6% minority equity stake in DAZN, and a seat on its board. In addition, $362 million in shareholder loans owed to News Corp will be repaid in full; Foxtel’s current debt will be refinanced when the deal closes and transfer with the company.
The Journal reported in late 2023 that activist investor firm Starboard Value had built a stake in the company and planned to push for strategic and governance changes. News Corp investors in November rejected an effort to end the company’s dual-class share structure that had been backed by Starboard.
“DAZN is the right owner to take the business to the next level with their technological capabilities, global footprint and compelling sports rights,” News Corp Chief Executive Robert Thomson said. Thomson in early August said that the company had received third-party interest in Foxtel and was considering all options.
The sale is expected to close next year subject to regulatory approvals.
For DAZN, which streams live sporting events from boxing to women’s soccer and motor sport, the deal will add revenue, content and 4.7 million subscribers. It is an opportunity for DAZN to enter a key sports market and advances its long-term strategy of becoming “the global home of sport,” Shay Segev, DAZN’s chief executive, said in a statement.
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