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 that could see Australia’s most popular sports promoted more heavily 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 2024/25 subject to regulatory approvals.

Foxtel Group would retain its head office 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 for repayment for outstanding loans to Foxtel Group, while Telstra will get $128 million. 

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

Under its terms, News Corp will receive a six per cent minority interest in DAZN while Telstra, which owns a 35 per cent stake in Foxtel, will get a three per cent stake in the London-based sports streaming service backed by British-Ukranian billionaire Len Blavatnik.

‘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,’ DAZN chief executive Shay Segev said.

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 world-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 and under-represented sports,’ he said.

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

It has been heavily promoting the American football league to its international audience, including via broadcasts in five different languages.

DAZN also holds the rights to a long list of sports from around the globe.

Foxtel Group said the transaction would provide more international sports for Foxtel and Kayo subscribers. 

News Corp chief executive Robert Thomson called the agreement ‘a victory for News Corp shareholders, DAZN, and sports fans in Australia and around the world’.

‘Foxtel has been transformed into a genuine digital and streaming leader in Australia,’ he said.

‘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.’