News Corp Announces Agreement to Sell Foxtel to DAZN for Enterprise Value of A$3.4 Billion
News Corp (NWS) has agreed to sell Foxtel Group to DAZN Group for an enterprise value of A$3.4 billion, representing over 7x fiscal 2024 Foxtel EBITDA. The deal includes full repayment of A$578 million in shareholder loans to News Corp and grants the company approximately 6% equity stake in DAZN with one board seat. Telstra will also sell its minority interest, receive repayment of A$128 million in loans, and acquire about 3% stake in DAZN.
The transaction, expected to close in second half of fiscal 2025, allows News Corp to focus on key growth segments: Dow Jones, Digital Real Estate Services, and Book Publishing. Foxtel's current CEO Patrick Delany and management team will continue leading the business, which will maintain its Australian-based operations while leveraging DAZN's global reach and technology.
News Corp (NWS) ha concordato di vendere Foxtel Group a DAZN Group per un valore d'impresa di 3,4 miliardi di dollari australiani, che rappresenta oltre 7 volte l'EBITDA di Foxtel per l'anno fiscale 2024. L'accordo include il rimborso totale di 578 milioni di dollari australiani in prestiti agli azionisti a News Corp e concede all'azienda circa il 6% di partecipazione azionaria in DAZN con un seggio nel consiglio. Anche Telstra venderà il suo interesse minoritario, riceverà il rimborso di 128 milioni di dollari australiani in prestiti e acquisirà circa il 3% di partecipazione in DAZN.
La transazione, che si prevede si concluda nella seconda metà dell'anno fiscale 2025, consente a News Corp di concentrarsi su segmenti chiave di crescita: Dow Jones, Servizi Immobiliari Digitali e Pubblicazione di Libri. L'attuale CEO di Foxtel, Patrick Delany, e il team di gestione continueranno a guidare l'azienda, che manterrà le sue operazioni in Australia sfruttando la portata globale e la tecnologia di DAZN.
News Corp (NWS) ha acordado vender Foxtel Group al Grupo DAZN por un valor empresarial de 3.4 mil millones de dólares australianos, lo que representa más de 7 veces el EBITDA de Foxtel proyectado para el año fiscal 2024. El acuerdo incluye el reembolso total de 578 millones de dólares australianos en préstamos a accionistas a News Corp y concede a la empresa aproximadamente un 6% de participación accionaria en DAZN, con un asiento en la junta. Telstra también venderá su interés minoritario, recibirá el reembolso de 128 millones de dólares australianos en préstamos y adquirirá aproximadamente un 3% de participación en DAZN.
Se espera que la transacción se cierre en la segunda mitad del año fiscal 2025, lo que permite a News Corp centrarse en segmentos clave de crecimiento: Dow Jones, Servicios de Bienes Raíces Digitales y Publicación de Libros. El actual CEO de Foxtel, Patrick Delany, y su equipo directivo continuarán liderando la empresa, que mantendrá sus operaciones basadas en Australia mientras aprovecha el alcance global y la tecnología de DAZN.
뉴스 코프 (NWS)는 34억 호주 달러의 기업 가치로 DAZN 그룹에 포엑스텔 그룹을 판매하기로 합의했습니다. 이는 2024 회계연도의 포엑스텔 EBITDA의 7배 이상에 해당합니다. 이 거래는 뉴스 코프에 대한 5억 7800만 호주 달러의 주주 대출을 전액 상환하고, DAZN에 약 6%의 지분을 부여하며 이사회 이사 한 자리를 보장합니다. 텔스트라는 또한 소수 지분을 매각하고, 1억 2800만 호주 달러의 대출 상환을 받으며 DAZN에서 약 3%의 지분을 취득할 것입니다.
2025 회계연도 하반기에는 거래가 완료될 것으로 예상되며, 이는 뉴스 코프가 다우 존스, 디지털 부동산 서비스 및 도서 출판과 같은 주요 성장 부문에 집중할 수 있도록 합니다. 포엑스텔의 현 CEO인 패트릭 델라니와 경영팀은 DAZN의 글로벌 도달 범위와 기술을 활용하면서 호주에서 비즈니스를 계속 이끌어갈 것입니다.
News Corp (NWS) a accepté de vendre le groupe Foxtel au groupe DAZN pour une valeur d’entreprise de 3,4 milliards de dollars australiens, représentant plus de 7 fois l'EBITDA de Foxtel pour l'exercice fiscal 2024. L'accord comprend le remboursement intégral de 578 millions de dollars australiens de prêts aux actionnaires à News Corp et accorde à l'entreprise environ 6% de participation au capital de DAZN avec un siège au conseil. Telstra vendra également son intérêt minoritaire, recevra le remboursement de 128 millions de dollars australiens en prêts et acquerra environ 3% de participation dans DAZN.
La transaction, qui devrait se conclure dans la seconde moitié de l'exercice 2025, permet à News Corp de se concentrer sur des segments de croissance clés : Dow Jones, Services immobiliers numériques et Édition de livres. L'actuel PDG de Foxtel, Patrick Delany, et son équipe de direction continueront à diriger l'entreprise, qui maintiendra ses opérations basées en Australie tout en tirant parti de la portée mondiale et de la technologie de DAZN.
News Corp (NWS) hat zugestimmt, die Foxtel Group an die DAZN Group für einen Unternehmenswert von 3,4 Milliarden AUD zu verkaufen, was mehr als dem 7-fachen des EBITDA von Foxtel für das Geschäftsjahr 2024 entspricht. Der Deal umfasst die vollständige Rückzahlung von 578 Millionen AUD an Aktionärsdarlehen an News Corp und gewährt dem Unternehmen einen etwa 6%igen Eigenkapitalanteil an DAZN mit einem Sitz im Vorstand. Telstra wird auch seine Minderheitsbeteiligung verkaufen, 128 Millionen AUD an Darlehen zurückerhalten und etwa 3% an DAZN erwerben.
Die Transaktion, die in der zweiten Hälfte des Geschäftsjahres 2025 abgeschlossen werden soll, ermöglicht es News Corp, sich auf wichtige Wachstumssegmente zu konzentrieren: Dow Jones, Digitale Immobilienservices und Buchverlag. Der derzeitige CEO von Foxtel, Patrick Delany, und das Management-Team werden das Unternehmen weiterhin leiten, das seine australischen Betriebe aufrechterhält und dabei die globale Reichweite und Technologie von DAZN nutzt.
- Sale values Foxtel at A$3.4 billion, over 7x fiscal 2024 EBITDA
- Full repayment of A$578 million shareholder loans to News Corp
- News Corp receives approximately 6% equity stake in DAZN and board seat
- Transaction enables News Corp to focus on core growth segments
- Improved credit profile for News Corp post-transaction
- Divestment of significant revenue-generating asset
- Reduced exposure to Australian media market
- Minority position in DAZN provides control over future direction
Insights
The
The transaction's valuation metrics are particularly compelling given the challenging landscape for traditional media assets. The deal enables News Corp to streamline its portfolio while maintaining exposure to the growing sports streaming market through DAZN's global platform. The full debt refinancing at closing significantly improves News Corp's credit profile, providing enhanced financial flexibility for core growth initiatives in Dow Jones, Digital Real Estate and Book Publishing segments.
This merger represents a seismic shift in the global sports streaming landscape. DAZN's acquisition of Foxtel creates a formidable player in the Asia-Pacific region, combining Foxtel's strong local sports rights portfolio with DAZN's technological infrastructure and international reach across 200 markets. The retention of Foxtel's current management team, led by Patrick Delany, ensures operational continuity while leveraging DAZN's global distribution capabilities to potentially monetize Australian sports content internationally.
The strategic rationale aligns perfectly with evolving media consumption patterns, as Foxtel has already pivoted from traditional pay-TV to a streaming-first model. DAZN's expertise in direct-to-consumer sports streaming and their commitment to expanding women's sports coverage could accelerate Foxtel's digital transformation and market penetration.
The deal structure demonstrates sophisticated financial engineering that benefits all stakeholders. The
The reclassification of Foxtel as discontinued operations from Q2 FY2025 will enhance News Corp's financial reporting clarity, likely leading to improved valuation multiples as investors can better focus on core business performance. This strategic exit aligns with broader media industry consolidation trends and positions both companies for enhanced competitive advantage in their respective focus areas.
Foxtel, which has transformed into a digital and streaming leader in sports and entertainment content under News Corp management, will join DAZN, a global provider of sports streaming, giving international exposure to Australian sport, while bringing Australian sports fans greater access to programming from across the globe
Enterprise value represents more than 7x Fiscal 2024 Foxtel EBITDA, including repayment of shareholder loans amounting to
Transaction enables News Corp to further simplify to drive long-term stockholder value and increase focus on key growth pillars
Under the terms of the agreement, shareholder loans in the amount of
The agreement follows a strategic and financial review of Foxtel as part of News Corp’s ongoing efforts to optimize its portfolio and simplify the structure of the Company.
Under News Corp’s management, Foxtel has become a digital and streaming leader in sports and entertainment. With DAZN’s global reach, industry leading technology and broad content portfolio, the proposed transaction enhances Foxtel’s position as a digital-first, streaming-focused business, led by the current CEO, Patrick Delany, and his world-class management team.
The proposed transaction likewise empowers News Corp to further focus on its key growth segments: Dow Jones, Digital Real Estate Services and Book Publishing, while also providing the Company with a shareholding in a larger, global sports streaming and entertainment company with over 300 million viewers across 200 markets. DAZN continues to experience significant growth as it pursues expansion into new markets and across more sports.
The transaction, which is expected to close in the second half of fiscal 2025, is subject to regulatory approvals and other customary closing conditions. For News Corp financial reporting purposes, Foxtel will be classified as discontinued operations as of the second quarter of fiscal 2025.
“This agreement is a victory for News Corp shareholders, DAZN, and sport fans in
Shay Segev, Chief Executive Officer of DAZN, 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. Foxtel is a successful business that has undergone a remarkable digital transformation in recent years, and we are confident that our global reach and relentless pursuit of innovation will continue to drive the business forward and ensure long-term success.
“We are committed to supporting and investing in Foxtel’s television and streaming services, across both sports and entertainment, using our world-leading technology to further enhance the viewing experience for customers. We are also committed to using our global reach to export Australia’s most popular sports to new markets around the world, and we will continue to promote women’s and under-represented sports.
“We’re looking forward to working closely with Patrick Delany and his team, as well as News Corp and Telstra as shareholders in DAZN, to realise our ambitious vision for the future of sport entertainment.”
The Chairman of Foxtel, Siobhan McKenna, said the agreement with DAZN was international recognition of the transformation of Foxtel from an incumbent pay TV operator to a sports and entertainment digital and streaming leader. “Over the last seven years the Foxtel team, with the strong support of News, have achieved an extraordinary turnaround in an intensely competitive environment.”
Foxtel Group CEO Patrick Delany said: “News Corp’s unwavering support and guidance has seen Foxtel successfully reinvent itself into a dynamic, streaming-led business delivering strong financial performance. We are excited to embark on the next chapter with DAZN, a premier global sports streaming provider, as our new shareholder. DAZN’s backing will enhance our strategy needed, provide access to their global reach, and strengthen the infrastructure and technology to accelerate our transformation. Most importantly, we will continue to be a proudly Australian-based business, led by local management, committed to delivering locally-produced sports and entertainment content for our audiences."
Goldman Sachs served as financial advisor and Gibson, Dunn & Crutcher LLP and Allens served as legal advisor to News Corp on the transaction.
Forward-Looking Statements
This release contains forward-looking statements based on current expectations or beliefs, as well as assumptions about future events, and these statements are subject to factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The words “expect,” “estimate,” “anticipate,” “predict,” “believe,” “potential,” “will,” “should” and similar expressions and variations thereof are intended to identify forward-looking statements. These statements appear in a number of places in this release and include statements with respect to, among other things, the expected timing for the completion of, and the potential benefits from, the sale of Foxtel. Readers are cautioned that any forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Many factors, such as the risks and uncertainties related to the parties’ efforts to comply with and satisfy applicable regulatory approvals and closing conditions relating to the sale, could cause actual results to differ materially from those described in these forward-looking statements. The forward-looking statements in this release speak only as of this date and News Corp and Foxtel undertake no obligation (and expressly disclaim any obligation) to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
About News Corp
News Corp (Nasdaq: NWS, NWSA; ASX: NWS, NWSLV) is a global, diversified media and information services company focused on creating and distributing authoritative and engaging content and other products and services. The Company comprises businesses across a range of media, including: information services and news, digital real estate services, book publishing and subscription video services in
About Foxtel
The Foxtel Group is one of
The Foxtel Group's diversified business includes Fox Sports,
About DAZN
As a world-leading sports entertainment platform, DAZN streams over 90,000 live events annually and is available in more than 200 markets worldwide.
DAZN is the home of European football, women’s football, boxing and MMA, and the NFL internationally. The platform features the biggest sports and leagues from around the world – Bundesliga, Serie A, LALIGA, Ligue 1, Formula 1, NBA, Moto GP, and many more including the 2025 FIFA Club World Cup.
DAZN is transforming the way people enjoy sport. With a single, frictionless platform, sports fans can watch, play, buy, and connect. Live and on-demand sports content, anywhere, in any language, on any device – only on DAZN.
DAZN partners with leading pay-TV operators, ISPs and Telcos worldwide to maximise sports exposure to a broad audience. Its partners include Deutsche Telekom, Orange, Sky, Movistar, Telenet, Vodafone, and many more.
DAZN is a global, privately-owned company, founded in 2016, with more than 3,000 employees. The Group generated
View source version on businesswire.com: https://www.businesswire.com/news/home/20241222637954/en/
News Corp Corporate Communications
Arthur Bochner
646-422-9671
abochner@newscorp.com
News Corp Australia
John Connolly
+61 417 684 064
jc@jcp.com.au
News Corp Investor Relations
Michael Florin
212-416-3363
mflorin@newscorp.com
Anthony Rudolf
212-416-3040
arudolf@newscorp.com
DAZN Corporate Communications (Hawthorn Advisors)
Richard Suchet
+44 7824 824943
DAZN@hawthornadvisors.com
Telstra Communications Principal
Jonathon Larkin
+61 0477 310 149
jonathon.larkin@team.telstra.com
Source: News Corporation
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