Sports Broadcasting Shake-Up: DAZN Acquires Foxtel for $2 Billion
In a major move that’s set to reshape the Australian sports broadcasting landscape, News Corp has agreed to sell its cable TV unit Foxtel to British-owned sports network DAZN for a staggering $2 billion, including debt. This deal marks a significant shift in the media empire’s strategy, as it looks to cut its exposure to a business heavily impacted by the rise of streaming platforms.
A New Era for Sports Fans
DAZN, a global streaming platform available in North America, Europe, and Asia, will gain a foothold in the Australian market, offering a range of sports content, including American football, boxing, and baseball. The platform has already established itself as a major player in the sports broadcasting world, with partnerships with top European leagues like Italy’s Serie A, Spain’s LaLiga, Germany’s Bundesliga, and France’s Ligue 1.
Foxtel’s Struggles
Foxtel, launched by News Corp in 1995, has struggled to maintain its profitability in recent years. The rise of cheaper streaming options like Netflix has led to a decline in subscriber revenue, while the cost of sports broadcasting rights has continued to soar. Despite efforts to diversify its offerings, including the launch of its own streaming services like Kayo, Foxtel’s earnings have suffered.
A Shift in Consumer Expectations
The entry of DAZN into the Australian market is likely to have a significant impact on consumer expectations, potentially leading to a reshaping of the pricing landscape. With its competitive pricing model, DAZN may force traditional broadcasters to rethink their strategies.
The Future of Sports Broadcasting
The deal comes at a time when sports broadcasting rights are being hotly contested. The Australian Football League (AFL) and Cricket Australia have secured lucrative deals with Foxtel and Channel Seven, while Tennis Australia has locked up rights with Nine Entertainment until 2029. As the market continues to evolve, it will be interesting to see how these players adapt to the changing landscape.
News Corp’s Focus on Publishing
The sale of Foxtel will allow News Corp to focus on its core operations, including its publishing arm, HarperCollins, and digital real estate platform REA Group. The company’s chief executive, Robert Thomson, has stated that the deal will enable News Corp to concentrate on its core businesses.
Regulatory Approval
The deal is subject to regulatory approval and is expected to be finalized in the second half of 2025. Given the overseas ownership of DAZN, the transaction will need to be cleared by the Foreign Investment Review Board (FIRB).
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