Sports streaming platform DAZN has announced an agreement to acquire Australian media company Foxtel Group for $2.2bn.
If the deal receives regulatory approval, the acquisition will significantly enhance DAZN’s scope and coverage of the Australian market to expand its global footprint and tailor its content to Australian customers.
The addition of Foxtel to DAZN brings the group’s pro-forma revenues towards $6bn and provides the additional content, expertise and expansion opportunities to accelerate DAZN’s growth trajectory.
Shay Segev, CEO 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.”
Foxtel is one of Australia’s leading media companies, with 4.7 million subscribers who will benefit from DAZN’s sports content, platform technology and global reach.
From its beginnings as Australia’s original pay-TV channel, Foxtel has evolved to become a digital and streaming platform in sports and entertainment. The proposed transaction positions Foxtel for continued expansion as a digital-first, streaming-focused business.
Under the terms of the transaction, News Corp and Telstra will become minority shareholders in DAZN, enabling them to retain an interest in Foxtel.
Foxtel Group CEO, Patrick Delany, added: “Today’s announcement is a natural evolution for the Foxtel Group, having reinvented the company over the past five years as Australia’s most dynamic technology-led streaming company.
“Kayo and Foxtel provide Australian sports fans with access to the best Australian and international sport and shows, including AFL, NRL and Cricket with 4.7 million subscribers.
“We are excited by DAZN’s commitment to the Australian market. They are experts in the sports media business and can play a significant role in supporting Foxtel as the business grows its streaming capabilities, bringing a bigger and better service to customers across entertainment, news and sport. They are a perfect match for us as we look toward this next era of growth.”
Delany continued: “We have been grateful for the support of News Corp while we reimagined the future of Foxtel. In 2019, when we merged Foxtel and Fox Sports we had many people questioning our future.
“After launching Kayo later in 2019 and BINGE in 2020, today we are the largest Australian-based streamer of sport and entertainment, we have stabilised our Foxtel base and launched Hubbl to help consumers find all the streamed content they love all in one place. This wouldn’t have been possible without the support and encouragement of News Corp.”
