Foxtel the Company that pioneered streaming in Australia has been sold to UK Streaming Company DAZN in a $3.4M deal that is a record for an Australian streaming entity.
News Corp, who owned 65% of the business, will retail 6% of the new entity, Telstra, who owned 35% has sold down their shareholding less 3% giving the two former operators 9% of the new Foxtel entity.
Rolled out three decades ago Foxtel became a sport and streaming powerhouse with 4.9 million Australians choosing to pay for a superior streaming of sport than what free to air was able to deliver in Australia.
Ironically the deal comes when it is revealed that the value of Network Ten, which is owned by the US entity Paramount Global, is zero with debt mounting with the possibility that their TV license could be sold.
Under the DAZN deal, Foxtel will repay a $578m loan to News Corp in full of Foxtel chief executive Patrick Delany who spearheaded the deal staying on to run the operation for the new owners.
DAZN is backed by London-based billionaire Sir Leonard Blavatnik. The streaming platform has gained the rights to the Serie A soccer in Italy, Spain’s La Liga and Germany’s Bundesliga.
It also has high-profile boxing rights in the UK and US.
It also has the global streaming rights with the US football league NFL under a 10-year deal.
News Corp global chief executive Robert Thomson first flagged a potential sale in August when he told analysts the soaring growth of the Foxtel – and specifically, its key platforms of BINGE and Kayo – had attracted interest from potential buyers.
“News Corp’s unwavering support and guidance has seen Foxtel successfully reinvent itself into a dynamic, streaming-led business delivering strong financial performance,” Patrick Delaney, Foxtel Group CEO said.
Shay Segev, the chief executive officer of DAZN, said Foxtel has undergone a remarkable digital transformation in recent years and he was committed to supporting and investing in Foxtel’s television and streaming services, across both sports and entertainment. DAZN’s global platform offered the chance to take Australian sports to a global audience, he said.
“Australians watch more sport than any other country in the world, which makes 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”.
Described as the “Netflix of sports” DAZN is set to roll Foxtel into a global sports operation with management claiming that Foxtel will play a key role in their expansion. ChannelNews understands that a key interest is the Kayo sports app.
The addition of Foxtel gives it the mass needed to take on global tech giants Amazon and Apple as well as traditional media players like Disney’s ESPN in the chase for sports rights.
“This agreement is a victory for News Corp shareholders, DAZN, and sport fans in Australia and around the world,” News’ Mr Thomson said on Monday.
“Foxtel has been transformed into a genuine digital and streaming leader in Australia, and we believe DAZN is the right owner to take the business to the next level with their technological capabilities, global footprint and compelling sports rights”.
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