Foxtel, which has transformed into a digital
and streaming leader in sports and entertainment content under News
Corp management, will join DAZN, a global provider of sports
streaming, giving international exposure to Australian sport, while
bringing Australian sports fans greater access to programming from
across the globe
Enterprise value represents more than 7x Fiscal
2024 Foxtel EBITDA, including repayment of shareholder loans
amounting to A$706 million and minority equity interest of
approximately 9% in DAZN
Transaction enables News Corp to further
simplify to drive long-term stockholder value and increase focus on
key growth pillars
News Corporation (“News Corp” or the “Company”) (Nasdaq: NWS,
NWSA: ASX: NWS, NWSLV) announced today that it has entered into a
definitive agreement for the sale of Foxtel Group (“Foxtel”) to
DAZN Group Limited (“DAZN”), a premier global sports streaming
platform.
Under the terms of the agreement, shareholder loans in the
amount of A$578 million outstanding and owing to News Corp will be
repaid in full in cash at closing. Foxtel’s current debt will be
refinanced at closing and transfer with Foxtel, and News Corp will
hold a minority equity interest in DAZN of approximately 6% as well
as one seat on its Board of Directors. Telstra Group Ltd
(“Telstra”) will also sell its minority interest in Foxtel, have
its shareholder loans of A$128 million repaid, and take a minority
stake in DAZN of approximately 3%. The proposed transaction values
Foxtel at an enterprise value of A$3.4 billion, representing more
than 7x fiscal 2024 Foxtel EBITDA.
The agreement follows a strategic and financial review of Foxtel
as part of News Corp’s ongoing efforts to optimize its portfolio
and simplify the structure of the Company.
Under News Corp’s management, Foxtel has become a digital and
streaming leader in sports and entertainment. With DAZN’s global
reach, industry leading technology and broad content portfolio, the
proposed transaction enhances Foxtel’s position as a digital-first,
streaming-focused business, led by the current CEO, Patrick Delany,
and his world-class management team.
The proposed transaction likewise empowers News Corp to further
focus on its key growth segments: Dow Jones, Digital Real Estate
Services and Book Publishing, while also providing the Company with
a shareholding in a larger, global sports streaming and
entertainment company with over 300 million viewers across 200
markets. DAZN continues to experience significant growth as it
pursues expansion into new markets and across more sports.
The transaction, which is expected to close in the second half
of fiscal 2025, is subject to regulatory approvals and other
customary closing conditions. For News Corp financial reporting
purposes, Foxtel will be classified as discontinued operations as
of the second quarter of fiscal 2025.
“This agreement is a victory for News Corp shareholders, DAZN,
and sport fans in Australia and around the world,” said News Corp
Chief Executive Robert Thomson. “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. This transaction also allows News Corp to focus on
our other growth pillars of Dow Jones, Digital Real Estate and Book
Publishing, while benefiting from repayment of our shareholder
loans and an improved credit profile. We are proud to be a
long-term partner of DAZN and its talented team.”
Shay Segev, Chief Executive Officer 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.”
The Chairman of Foxtel, Siobhan McKenna, said the agreement with
DAZN was international recognition of the transformation of Foxtel
from an incumbent pay TV operator to a sports and entertainment
digital and streaming leader. “Over the last seven years the Foxtel
team, with the strong support of News, have achieved an
extraordinary turnaround in an intensely competitive
environment.”
Foxtel Group CEO Patrick Delany said: “News Corp’s unwavering
support and guidance has seen Foxtel successfully reinvent itself
into a dynamic, streaming-led business delivering strong financial
performance. We are excited to embark on the next chapter with
DAZN, a premier global sports streaming provider, as our new
shareholder. DAZN’s backing will enhance our strategy needed,
provide access to their global reach, and strengthen the
infrastructure and technology to accelerate our transformation.
Most importantly, we will continue to be a proudly Australian-based
business, led by local management, committed to delivering
locally-produced sports and entertainment content for our
audiences."
Goldman Sachs served as financial advisor and Gibson, Dunn &
Crutcher LLP and Allens served as legal advisor to News Corp on the
transaction.
Forward-Looking Statements
This release contains forward-looking statements based on
current expectations or beliefs, as well as assumptions about
future events, and these statements are subject to factors and
uncertainties that could cause actual results to differ materially
from those described in the forward-looking statements. The words
“expect,” “estimate,” “anticipate,” “predict,” “believe,”
“potential,” “will,” “should” and similar expressions and
variations thereof are intended to identify forward-looking
statements. These statements appear in a number of places in this
release and include statements with respect to, among other things,
the expected timing for the completion of, and the potential
benefits from, the sale of Foxtel. Readers are cautioned that any
forward-looking statements are not guarantees of future performance
and involve risks and uncertainties. Many factors, such as the
risks and uncertainties related to the parties’ efforts to comply
with and satisfy applicable regulatory approvals and closing
conditions relating to the sale, could cause actual results to
differ materially from those described in these forward-looking
statements. The forward-looking statements in this release speak
only as of this date and News Corp and Foxtel undertake no
obligation (and expressly disclaim any obligation) to publicly
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as
required by law.
About News Corp
News Corp (Nasdaq: NWS, NWSA; ASX: NWS, NWSLV) is a global,
diversified media and information services company focused on
creating and distributing authoritative and engaging content and
other products and services. The Company comprises businesses
across a range of media, including: information services and news,
digital real estate services, book publishing and subscription
video services in Australia. Headquartered in New York, News Corp
operates primarily in the United States, Australia and the United
Kingdom, and its content and other products and services are
distributed and consumed worldwide. More information is available
at http://www.newscorp.com.
About Foxtel
The Foxtel Group is one of Australia's leading media companies
with 4.7 million subscribers. Its businesses include subscription
television, streaming, sports production and advertising. The
Foxtel Group is owned 65% by News Corp and 35% by Telstra.
The Foxtel Group's diversified business includes Fox Sports,
Australia's leading sports production company, famous for live
sports and shows with the best commentators and personalities. It
is also the home of local and global entertainment content and
continues to be the partner of choice for the widest range of
sports and international content providers based on established,
long-term relationships, growing streaming audiences, and position
as the largest Australian-based subscription television
company.
About DAZN
As a world-leading sports entertainment platform, DAZN streams
over 90,000 live events annually and is available in more than 200
markets worldwide.
DAZN is the home of European football, women’s football, boxing
and MMA, and the NFL internationally. The platform features the
biggest sports and leagues from around the world – Bundesliga,
Serie A, LALIGA, Ligue 1, Formula 1, NBA, Moto GP, and many more
including the 2025 FIFA Club World Cup.
DAZN is transforming the way people enjoy sport. With a single,
frictionless platform, sports fans can watch, play, buy, and
connect. Live and on-demand sports content, anywhere, in any
language, on any device – only on DAZN.
DAZN partners with leading pay-TV operators, ISPs and Telcos
worldwide to maximise sports exposure to a broad audience. Its
partners include Deutsche Telekom, Orange, Sky, Movistar, Telenet,
Vodafone, and many more.
DAZN is a global, privately-owned company, founded in 2016, with
more than 3,000 employees. The Group generated $3.2bn in revenue in
2023, having grown its annual revenues by over 50% on average from
2020 to 2023, through diverse revenue streams comprising
subscriptions, advertising, sponsorship, and transactional. For
more information on DAZN, our products, people, and performance,
visit www.dazngroup.com.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241222637954/en/
News Corp Corporate Communications Arthur Bochner 646-422-9671
abochner@newscorp.com
News Corp Australia John Connolly +61 417 684 064
jc@jcp.com.au
News Corp Investor Relations Michael Florin 212-416-3363
mflorin@newscorp.com
Anthony Rudolf 212-416-3040 arudolf@newscorp.com
DAZN Corporate Communications (Hawthorn Advisors) Richard Suchet
+44 7824 824943 DAZN@hawthornadvisors.com
Telstra Communications Principal Jonathon Larkin +61 0477 310
149 jonathon.larkin@team.telstra.com
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