Sports juggernaut DAZN has completed its blockbuster acquisition of Australian pay television provider Foxtel, the companies jointly announced this week.
The deal allows former Foxtel owner News Corp Australia to largely exit the pay television market while retaining a minority stake in the cable TV and broadband provider.
The acquisition was valued at AU $3.4 billion (around U.S. $2.1 billion), and is DAZN’s first foray into the national pay television space.
“With Foxtel’s strong local presence and deep connection to Australian sports fans, combined with DAZN’s global scale, technology, and innovation, we’re unlocking powerful new opportunities for fans, rights holders, and partners alike,” Shay Segev, the CEO of DAZN, wrote in a social media post on Wednesday.
“Australians will continue to enjoy the premium sports, news, and entertainment they love under the Foxtel brands, now supercharged by DAZN’s global reach and capabilities. Together, we’ll help elevate Australian leagues, clubs, and talent to bigger stages around the world,” Segev continued. “I’m also especially pleased to be partnering with (Foxtel CEO) Patrick Delany on this next chapter. I look forward to building the future of sports together and driving impact across the Australian market and beyond.”
DAZN, based in London, has established a worldwide reputation for delivering premium sports over streaming, with the company clinching live broadcast rights to domestic and international soccer (football) tournaments, tennis, American football, motorsport, basketball, cricket and professional wrestling entertainment, among other competitive events.
“Foxtel’s successful transformation to becoming a leading provider of sports and entertainment is a result of the team’s tenacity, creativity and professionalism. Foxtel employees should be proud of their contribution to that success in the ultra-competitive content contest,” said Robert Thomson, the CEO of News Corp. “We are confident that DAZN is poised to drive the next phase of Foxtel’s growth, and we are delighted to be DAZN’s partner and shareholder. And we are pleased to have extra capital strength and optionality.”
News Corp said it was able to return AU $592 million (around U.S. $378 million) to its shareholders while retaining a minority stake in Foxtel. Andrew Cramer, News Corp’s Senior Vice President and Deputy Chief Financial Officer, is also joining DAZN’s board.
DAZN will continue operating Foxtel’s pay television services over cable, satellite and streaming, including its Binge platform, as well as the company’s broadband and telephone services.
