As a long-time sports enthusiast who has witnessed numerous mergers and acquisitions in the industry, I must say this latest development between News Corp., Telstra, Foxtel Group, and DAZN is truly intriguing. The prospect of DAZN entering the Australian market, a country known for its passion for sports, promises an exciting future for both the streaming platform and the fans.
News Corporation and the Australian telecommunications firm, Telstra, have agreed upon a transaction to pass on the Australian media group, Foxtel, to the sports streaming service DAZN for approximately 2.1 billion dollars.
According to the contract, all shareholder loans totaling $361 million that are currently due to News Corp. will be fully repaid in cash at the completion of the deal. At this point, Foxtel’s existing debt will be restructured and passed on, while News Corp. acquires approximately 6% equity stake in DAZN and a single seat on its board of directors.
1) In addition to other moves, Telstra Group Ltd. plans to sell its portion of Foxtel, have a loan of $80 million paid back, and acquire a small, approximately 3% stake in DAZN. Currently, the Foxtel Group is jointly owned by News Corp. (65%) and Telstra (35%).
As a passionate gamer, I’d put it like this: “This partnership offers me an international perspective on Aussie sports, and it boosts my global gaming content accessibility too!
The deal will allow News Corp. to streamline their operations for long-term profitability and concentrate on crucial growth areas, according to the company’s statement. This agreement comes after a thorough review of Foxtel as part of News Corp.’s continuous efforts to improve its portfolio and simplify the corporate structure.
News Corp. CEO Robert Thomson stated that this agreement marks a triumph for News Corp. shareholders, DAZN, and sports enthusiasts globally. He explained that Foxtel has been transformed into a digital and streaming powerhouse in Australia, and believes DAZN is the ideal candidate to further advance the business with their advanced technology, global reach, and attractive sports rights. This deal also enables News Corp. to concentrate on our other growth areas such as Dow Jones, Digital Real Estate, and Book Publishing, while enjoying loan repayments to shareholders and an enhanced credit standing.
Under the leadership of CEO Patrick Delany and his current team, Foxtel is set to carry on its operations. With a customer base of approximately 4.7 million subscribers, Foxtel’s ventures span across subscription TV, streaming services, sports production, and advertising industries.
Foxtel, under News Corp’s constant backing and strategic advice, has evolved into a vibrant, stream-focused enterprise, demonstrating robust financial growth,” Delany stated, further noting that DAZN’s support would bolster their strategic plans, expand their global reach, and boost their technological infrastructure to speed up the transformation process. Above all, he emphasized that Foxtel remains an Australian company, steered by local leadership, dedicated to offering locally produced sports and entertainment content to our viewers.
DAZN boasts a global audience of approximately 300 million viewers across 200 different regions, and it broadcasts over 90,000 live events annually. The streaming service aims to expand into new markets and diversify its sports offerings, which currently encompass European football, women’s football, boxing, MMA, and the NFL internationally.
DAZN’s CEO, Shay Segev, expressed enthusiasm about entering Australia, a nation known for its love of sports. This move represents a crucial step in DAZN’s broader goal to establish itself as a global hub for sport. Foxtel, a thriving company that has undergone significant digital evolution, is the target. We believe our worldwide presence and commitment to constant innovation will propel Foxtel further, ensuring its longevity and success.
The agreement, anticipated to be finalized during the latter part of the financial year 2025, is contingent upon obtaining necessary regulatory clearances and fulfilling standard closing requirements.
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2024-12-23 04:54