News Corp and Telstra have agreed to sell Foxtel, the pay television broadcaster and streaming company, to British sports streaming platform DAZN for $3.4 billion.

This transaction is set to significantly impact the local media landscape.

DAZN’s interest was first reported by The Australian Financial Review in November, following News Corp’s announcement to sell its stake after receiving third-party interest.

DAZN co-founder and CEO Shay Segev expressed that this deal presents an exciting opportunity for DAZN to enter the Australian market, which has a strong sports viewership.

News Corp’s CEO Robert Thomson commented that this agreement benefits News Corp shareholders, DAZN, and sports fans globally.

He noted that Foxtel has evolved into a leader in digital and streaming services in Australia and believes DAZN is well-suited to elevate the business further.

New focus

This sale will allow News Corp to concentrate on its other ventures, including Dow Jones and digital real estate.

The deal is expected to close in the latter half of fiscal 2025 and requires regulatory approvals.

Following the sale, News Corp will retain a minority equity interest of about 6% in DAZN, while Telstra will also divest its minority interest in Foxtel and acquire a 3% stake in DAZN.