News Corp completes sale of Foxtel Group to Dazn
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The news: Rupert Murdoch’s News Corp has completed the sale of Australian cable TV group Foxtel to sport streaming platform DAZN.
The numbers: The $3.4 billion transaction saw $592 million in shareholder loans repaid to News Corp, with News Corp receiving a minority equity interest in DAZN of approximately 6%. Minority shareholder Telstra also took on a 3% position in DAZN.
Prior to the sale, News Corp owned 65% and Telstra owned 35% of Foxtel Group.
The context: First announced in December, the deal was subject to regulatory approval from the Foreign Investment Review Board, which today approved the sale after a three-month assessment, ending months of speculation about the status of the sale.
A DAZN statement on the sale reads that Foxtel, Kayo Sports, BINGE, and Hubbl will retain their brand identities, with Foxtel continuing to operate as a standalone business while benefitting from the UK-based DAZN’s international reach.
News Corp’s senior vice president and deputy chief financial officer Andrew Cramer also joined the board of DAZN effective upon completion.
News Corp CFO Lavanya Chandrashekar said that the sale is significant for News Corp as it will allow the media company to focus on its core growth pillars, and meaningfully strengthen its balance sheet. “We expect the disposition will also be accretive to earnings per share,” Chandrashekar said.
What they said: On the deal, Robert Thomson, News Corp CEO said: “We are pleased to have extra capital strength and optionality.”
Patrick Delany, CEO of Foxtel Group, said: “DAZN’s ownership allows the Foxtel Group to remain an Australian-based business, with an Australian team and the sport, drama and entertainment that Australians love…We now have the opportunity to take the AFL and NRL, our two largest and most iconic Australian sports, to a massive global audience. For our Australian subscribers, it creates the opportunity to enjoy even more of the world’s best sports.”
The sources: News Corporation, DAZN press release
