Rupert Murdoch’s $3.4billion move is revealed in huge announcement: ‘Incredibly exciting opportunity’

News Corp and Telstra have agreed to sell Foxtel Group to British sports streaming and entertainment company DAZN in a $3.4 billion deal, allowing Australia’s most popular sports to be more heavily promoted to a global audience.

Foxtel’s streaming services, Binge and Kayo Sports, are included in the sale, which is expected to close in the second half of 2024/2025, subject to regulatory approval.

Foxtel Group would retain its headquarters in Artarmon under the leadership of local CEO Patrick Delany, and Telstra and News Corp would remain shareholders in DAZN, the company said.

Under the deal, News Corp will receive $578 million in cash to repay outstanding loans to Foxtel Group, while Telstra will get $128 million.

The transaction values ​​Foxtel Group at $3.4 billion, including debt.

Under the terms, News Corp will own a six percent minority stake in DAZN, while Telstra, which owns a 35 percent stake in Foxtel, will own a three percent stake in the London-based sports streaming service backed by the British-Ukrainian billionaire. Len Blavatnik.

‘Australians watch more sport than any other country in the world, making this deal an incredibly exciting opportunity for DAZN to enter a key market, marking another step in our long-term strategy to become the global home of sport’ , said the CEO of DAZN. said Shay Segev.

Mr Segev said DAZN was committed to supporting and investing in Foxtel’s TV and streaming services across sports and entertainment, using what he described as industry-leading technology.

“We are also committed to using our global reach to export Australia’s most popular sports to new markets around the world, just as we have done with the NFL, and we will continue to promote women’s sports and underrepresented sports,” he said.

DAZN has the rights to broadcast the NFL to all markets outside the US and China.

It has heavily promoted the American Football League to its international audience, including through broadcasts in five different languages.

DAZN also owns the rights to a long list of sports from around the world.

Foxtel Group said the transaction would bring more international sports to Foxtel and Kayo subscribers.

News Corp CEO Robert Thomson called the deal “a win for News Corp shareholders, DAZN and sports fans in Australia and around the world.”

“Foxtel has transformed into a true digital and streaming leader in Australia,” he said.

“We believe DAZN is the right owner to take the company to the next level with their technological capabilities, global footprint and compelling sports rights.”