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News Corp is selling Australian cable group Foxtel to UK-based sports streaming service DAZN in a A$3.4bn (US$2.1bn) deal, as Rupert Murdoch’s media conglomerate narrows its focus to news, property and publishing.
News Corp, which owns 65 per cent of the Australian pay-television company, will hold a minority equity stake of 6 per cent in DAZN and have a seat on DAZN’s board of directors.
Telstra, the Australian telecommunications group, will also sell its 35 per cent stake in Foxtel as part of the transaction and gain a 3 per cent stake in DAZN.
The deal, announced by News Corp on Monday, underscores its efforts to slim down its portfolio as Murdoch lays the groundwork for his conglomerate’s future.
This year, he attempted to overhaul the family trust to cement the conservative bent of News Corp, which controls television, newspaper, book publishing and streaming assets worth a combined $40bn in public markets.
News Corp chief executive Robert Thomson said the sale would free up the media conglomerate to focus on its fastest-growing businesses, including Dow Jones, the publisher of the Wall Street Journal; online property listings; and book publishing.
“DAZN is the right owner to take the business to the next level,” he said.
Sports streamer DAZN, created in 2016 out of Soviet-British billionaire Sir Leonard Blavatnik’s holding group Access Industries, has pursued new sports rights in recent years.
The company, which operates a subscription platform streaming sports such as boxing, football and tennis, last month agreed a $1bn deal with Fifa to show the new club world cup next year.
Through the acquisition, DAZN will gain a toehold in Australian sports. Foxtel owns Fox Sports and shows the Australian Football League and Cricket Australia, giving DAZN rights to two of the most sought-after broadcasting deals in the continent through the next decade.
DAZN said Foxtel chief Patrick Delany would remain in his position. The deal, subject to approval by regulators, is expected to close next year.
