On June 20, 2012, Foxtel was headquartered in North Ryde, Sydney.
Cameron Spencer | Getty Images News | Getty Images
News Corp and Telstra has agreed to sell its Australian cable TV and streaming company Foxtel to British sports platform DAZN, valuing the troubled business at A$3.4 billion ($2.1 billion), including debt.
As part of the transaction, outstanding shareholder loans worth A$578 million will be repaid in full and Foxtel’s current debt will be refinanced at closing.
News Corp will take a 6% stake in DAZN, while Telstra will take a 3% stake in the London-based global streaming platform backed by billionaire Len Blavatnik.
Foxtel has been a drag on News Corp’s profits for years as the number of people subscribing to its broadcast content each month switched to cheaper streaming options such as Netflix. The company itself has launched a streaming service that charges less than traditional services.
DAZN said: “Australians watch more sports than any other country in the world, making this deal an incredibly exciting opportunity for DAZN to enter a key market and mark our emergence as the global home of sport. has taken another step forward in its long-term strategy.
News Corp will take a board seat at DAZN, which was founded in 2016 and is gearing up to become a global streaming platform like this Apple TV.
Telstra A$128 million in cash will be used to repay shareholder loans.
News Corp shares on the ASX were up 1 per cent at $49.65 in early trading, while Telstra shares were up 0.4 per cent against gains in the broader benchmark index.
