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(Bloomberg) -- Rupert Murdoch’s News Corp. agreed to sell Foxtel Group to sports platform DAZN Group Ltd. in a deal that values the Australian pay-television and streaming service at A$3.4 billion ($2.1 billion).
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The agreement announced Monday resolves the immediate future of a News Corp. business whose fate had looked uncertain for years.
After dominating Australia’s pay-television industry from the late 1990s, Foxtel bled customers to Netflix Inc. and other new-generation rivals. The once-struggling business restored its appeal by adding its own streaming brands including Kayo and Binge.
Under the terms of the deal, News Corp. will own around 6% of DAZN and have a seat on the board, while shareholder loans of A$578 million owed to News Corp. will be repaid in cash. Minority Foxtel shareholder Telstra Group Ltd. will also sell its stake and own about 3% of DAZN.
News Corp.’s Australian-listed shares climbed 3.3% to A$50.66 at the close in Sydney.
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DAZN, backed by billionaire Len Blavatnik, is a prominent player in the broadcast of live sports, holding multi-year rights for football and Formula One racing in several European markets. Launched in 2016, DAZN has won the main broadcasting rights deal for Ligue 1, France’s top professional football league, and also broadcasts National Football League games outside the US.
Blavatnik’s net worth is $39.4 billion, ranking him 39th on the Bloomberg Billionaires Index.
The Foxtel transaction is expected to close in the second half of fiscal 2025.
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