News Corporation (ASX:NWS) announced the sale of its 65% stake in Foxtel Group to DAZN Group Ltd for an enterprise value of $3.4 billion.
Under the terms of the deal, News Corp will receive a payout of $578 million in shareholder loans and retain a 6% stake in DAZN, securing a seat on the board of directors.
Telstra Group (ASX:TLS)which holds a 35% stake in Foxtel, will also sell its stake, receiving $128 million in loan repayments and a 3% stake in DAZN.
DAZN is a global sports streaming platform operating in over 200 markets, offering live and on-demand coverage of more than 90,000 events a year, including top leagues such as the Bundesliga, La Liga and Formula 1. Its revenue exceeded $3.2 billion in 2023
The deal values Foxtel at more than seven times its EBITDA for the 2024 financial year. Foxtel CEO Patrick Delaney and his team will continue to lead the business, with DAZN’s global reach providing further opportunities for growth.
News Corp Chief Executive Robert Thomson called the deal “a win for shareholders” and highlighted the company’s focus on its growth segments, including Dow Jones, digital real estate services and book publishing. The transaction is expected to close in the second half of financial year 2025, subject to regulatory approvals.
Shares of News Corp traded 1.61% higher at $49.85.
