Rupert Murdoch’s News Corp Completes Foxtel Group Sale to DAZN
The highly anticipated acquisition of Australian pay-TV operator Foxtel Group by global sports streaming provider DAZN has been finalized, marking a significant milestone in the media industry. News Corp, the majority shareholder of Foxtel Group, announced the completion of the sale, which had an enterprise value of $2.2 billion.
The transaction, which received regulatory approvals from Australian authorities, includes a repayment of shareholder loans amounting to A$592 million ($372.6 million) to News Corp. In addition, News Corp secured a minority stake of approximately 6% in DAZN and a board seat for its senior VP and deputy CFO, Andrew Cramer.
News Corp’s chief executive, Robert Thomson, praised the Foxtel team for their role in transforming the company into a leading provider of sports and entertainment. He highlighted the team’s tenacity, creativity, and professionalism, attributing their efforts to the company’s success in a competitive content landscape.
For News Corp, the sale of Foxtel Group represents a strategic shift towards its core growth pillars. CFO Lavanya Chandrashekar emphasized that these divisions contributed significantly to the company’s total segment EBITDA in the fiscal second quarter. The transaction is expected to strengthen News Corp’s balance sheet, reduce capital intensity, and improve return on invested capital, ultimately benefiting shareholders.
Despite the sale, News Corp remains committed to supporting Australian sport and entertainment through its platforms. Thomson expressed confidence in DAZN’s ability to drive the next phase of Foxtel’s growth, emphasizing News Corp’s partnership with the global sports streaming provider.
Overall, the completion of the deal signifies a new chapter for both Foxtel Group and News Corp. With DAZN at the helm, the future looks promising for Foxtel’s continued growth and success in the evolving media landscape.
