Press company (ASX:NWS) announced the sale of its 65% stake in Foxtel Group to DAZN Group Ltd for an enterprise value of $3.4 billion.
Under the terms of the deal, News Corp will receive repayment of $578 million in shareholder loans and retain a 6% stake in DAZN, guaranteeing a seat on its board of directors.
Telstra Group (ASX:TLS)which has a 35% stake in Foxtel, will also sell its stake, receiving $128 million in loan repayments and a 3% stake in DAZN.
DAZN is a global sports streaming platform operating in over 200 markets, providing live and on-demand coverage of over 90,000 events annually, including top leagues like Bundesliga, La Liga and Formula 1 Its revenues exceeded $3.2 billion in 2023.
The deal values Foxtel at more than seven times its EBITDA for the 2024 financial year. Foxtel CEO Patrick Delany and his team will continue to manage the business, with DAZN’s global reach providing new growth opportunities.
News Corp CEO Robert Thomson called the deal a “win for shareholders” and highlighted the company’s focus on its growth segments, including Dow Jones, digital real estate services and book publishing. The transaction is expected to close in the second half of fiscal 2025, subject to regulatory approvals.
Shares of News Corp are trading up 1.61% at $49.85.
