New Corp has announced that it has sold Foxtel Group to UK-based streaming platform DAZN.

The deal, which includes Foxtel’s pay-TV business and consumer brands Hubbl, Kayo and Binge, is reported to be worth $3.4 billion. In return, News Corp will take a 6 per cent stake in DAZN and gain a seat on the company’s board of directors.

DAZN also purchases Telstra‘s minor (35%) stake in Foxtel, with the telecommunications company taking a 3 per cent stake in DAZN.

In a statement, News Corp Chief Executive Robert Thomson said: “This agreement is a victory for News Corp shareholders, DAZN, and sport fans in Australia and around the world. 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 Foxtel Group will maintain its head office in Artarmon, Sydney, ensuring a strong local presence to oversee its sports and entertainment businesses and provide customer service for its key consumer brands: Foxtel, Kayo, Binge and Hubbl.

Foxtel was established at the advent of pay-TV in Australia, launching a cable service in 1995 as a joint venture between News Corp (20th Century Fox) and Telstra.

DAZN is a global, privately-owned company, founded in 2016, with more than 3,000 employees. It streams over 90,000 live events annually and is available in more than 200 markets worldwide.

Source: News Corp, DAZN