NEW YORK — News Corp has agreed to sell its Australian cable-TV unit, Foxtel, to the British-owned sports streaming network DAZN for A$3.4 billion ($2.1 billion), including debt. The deal marks a significant shift for Rupert Murdoch’s media empire, reducing its exposure to a business increasingly challenged by the rise of streaming platforms.
As part of the transaction, News Corp will retain a 6% stake in DAZN, the London-based streaming platform known for its extensive sports offerings. Additionally, the company will gain a board seat, while DAZN secures streaming rights to major Australian sports leagues, including the Australian Football League (AFL) and the National Rugby League (NRL). This move reflects a growing focus on sports streaming as traditional cable television struggles to keep pace with the surge in digital content consumption.
Foxtel, launched in 1995, has faced mounting pressure as Australian consumers shift to more affordable streaming services like Netflix and Kayo. The rising costs of sports broadcasting rights, combined with declining revenues, have created challenges for Foxtel, prompting the company to share sports rights with free-to-air broadcasters. Despite launching its own streaming services to compete with global giants, the company’s traditional cable-TV model has struggled to maintain a competitive edge.
Analysts have noted that the valuation of Foxtel, set at seven times its projected 2024 earnings before interest, tax, depreciation, and amortization, reflects the pressures facing the business. Morgan Stanley analysts highlighted that, while Foxtel has been one of News Corp’s weaker assets, the sale price was higher than expected, signaling a positive outcome for the company as it streamlines its portfolio. News Corp’s CEO, Robert Thomson, emphasized that the deal would allow the company to focus on its core areas, such as digital real estate, book publishing, and Dow Jones operations.
DAZN, backed by Ukrainian-born billionaire Len Blavatnik through his investment firm Access Industries, competes with traditional TV networks and satellite broadcasters, offering a variety of sports content, including American football, boxing, and European football. The sale also saw Australian telecom Telstra sell its 35% stake in Foxtel to DAZN, receiving A$128 million in cash and a 3% stake in the streaming company.
Foxtel CEO Patrick Delany will continue in his role, and the deal is expected to close in the second half of 2025. The transaction is a significant step in News Corp’s ongoing transformation under Rupert Murdoch’s leadership, further emphasizing its focus on publishing and digital ventures.
