Ownership of Foxtel has now formally shifted to global sports streaming platform DAZN from News Corp, with a 60% share, and Telstra.
The integration process will be phased and Foxtel, which will continue to operate as a standalone business, will be known as “a DAZN Company”.
Foxtel, Kayo Sports, BINGE, and Hubbl will retain brand identities.
The deal to buy the Australian entertainment cable and streaming business values Foxtel at an enterprise value of $3.4 billion.
News Corp gets shareholder loans of $578 million owing to it by Foxtel repaid in full in cash.
And without Foxtel on its books, News posted a better than expected 5% increase in revenue to $US2.24 billion for the December quarter.
“Foxtel’s successful transformation to becoming a leading provider of sports and entertainment is a result of the team’s tenacity, creativity and professionalism. Foxtel employees should be proud of their contribution to that success in the ultra-competitive content contest,” said Robert Thomson, News Corp’s CEO.
“We are confident that DAZN is poised to drive the next phase of Foxtel’s growth and we are delighted to be DAZN’s partner and shareholder. And we are pleased to have extra capital strength and optionality.”
News Corp also gained a minority equity interest in DAZN of about 6%.
Patrick Delany, CEO of Foxtel Group, said DAZN’s ownership allows the company to remain an Australian-based business, with an Australian team and the sport, drama and entertainment.
“As part of DAZN, we now benefit from their global scale, their leading technology platform and their track-record in innovation that will allow us to more effectively compete with the global streaming giants,” he said.
“A big part of what drives us at Foxtel is bringing the best sports and the best sports production to our subscribers.
“We now have the opportunity to take the AFL and NRL, our two largest and most iconic Australian sports, to a massive global audience. For our Australian subscribers, it creates the opportunity to enjoy even more of the world’s best sports.”
Shay Segev, CEO of DAZN, said this is a significant milestone for DAZN, expanding its global footprint into Australia, a key sports market with passionate fans.
“Foxtel’s strong local presence, combined with DAZN’s global scale, technology, and content rights, will unlock incredible opportunities for sports fans, advertisers, and partners, while continuing to deliver great drama, lifestyle and news content,” said Segev.
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