News Corp and Telstra seal $3.4 billion Foxtel sale to DAZN
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The news: News Corporation and Telstra have closed a deal to sell Foxtel to global sports streaming platform DAZN for $3.4 billion, confirming the sale in an announcement on Monday.
The numbers: The deal, subject to regulatory approval, will see $578 million in loans from News Corp repaid in cash and Foxtel's debts refinanced with News Corp to take a 6% stake in DAZN.
Minority shareholder Telstra will similarly take a 3% position and receive $128 million cash for its Foxtel loans.
The transaction puts Foxtel's enterprise value at $3.4 billion, or around seven times EBITDA. Goldman Sachs was the financial adviser while Gibson, Dunn & Crutcher LLP and Allens were the legal advisors to News Corp.
The news was foreshadowed by Capital Brief which revealed the talks were in an advanced stage in early December.
What they said: News Corp Chief Executive Robert Thomson called the deal a "victory" for shareholders and sports fans.
“Foxtel has been transformed into a genuine digital and streaming leader in Australia, and 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," Thompson said.
He added that News would be a "long-term partner" of DAZN and that the transaction would allow News Corp to refocus on its other growth pillars, including Dow Jones, digital real estate and book publishing.
DAZN chief executive officer Shay Segev said his company would continue to invest in Foxtel, export Australia's best shows to the rest of the world and promote women's sport.
“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," Segev said.
The source: News Corporation
