News Corp Finalizes Sale of Foxtel Group to DAZN Group
On Wednesday, News Corp announced the completion of its sale of the Foxtel Group, one of Australia’s prominent media companies, to DAZN Group. This strategic move, valued at approximately $2.1 billion, reflects a partnership formed with Telstra, the Australian telecommunications giant, late last year, as both companies aim to bolster their positions in the sports streaming market.
Regulatory Approvals Secured
The acquisition by DAZN was finalized following the necessary approvals from key regulatory bodies, including the Foreign Investment Review Board and the Australian Competition and Consumer Commission. These endorsements were crucial in facilitating the transaction, underscoring the importance of regulatory compliance in significant mergers.
Shareholder Implications and Corporate Changes
As a result of the transaction, News Corp has reimbursed shareholder loans and now holds approximately a 6% stake in DAZN. This dynamic creates an interesting synergy between the two media entities. Additionally, News Corp’s Senior Vice President and Deputy CFO, Andrew Cramer, has joined DAZN’s board, further aligning the interests of both organizations.
Commitment to Australian Sports and Entertainment
Despite the sale, News Corp reiterated its dedication to Australian sports and entertainment. The CEO, Robert Thomson, expressed pride in Foxtel’s evolution into a leading entity in sports and entertainment, crediting the team’s commitment and innovation for this success. He remarked, “We are confident that DAZN is poised to drive the next phase of Foxtel’s growth…” highlighting the anticipated positive impact of DAZN’s stewardship.
Focus on Core Growth Strategies
News Corp CFO, Lavanya Chandrashekar, stated the sale signifies a pivotal moment for the company, allowing it to concentrate on its primary growth areas that accounted for over 95% of total segment EBITDA in the last fiscal quarter. This strategic shift is aimed at enhancing the company’s balance sheet and optimizing returns on invested capital.
Anticipated Financial Benefits
Looking ahead, News Corp anticipates that the divestiture of Foxtel will positively influence its earnings per share, marking a significant financial milestone for the company.
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