The deal was described as "an incredibly exciting opportunity for DAZN to enter a key market"
Global sports streaming platform DAZN has acquired Foxtel Group for $3.4bn with help from Corrs Chambers Westgarth.
DAZN purchased the shares from News Corporation and Telstra Group. The deal is set to close in the second half of FY 2025, pending regulatory approvals and other customary closing conditions.
The agreement’s terms stipulate that shareholder loans valued at $578m outstanding and owing to News Corp will be repaid in full in cash at closing, according to a News Corp press release. Foxtel’s existing debt will be refinanced at closing, making the transfer with the company.
News Corp will pick up a minority equity interest of about 6% in DAZN and be granted one seat on the board. Meanwhile, Telstra’s $128m shareholder loans will be repaid and the company will gain a ~3% stake in DAZN.
“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”, News Corp chief executive Robert Thomson said in a media release.
DAZN CEO Shay Segev said that the deal was “an incredibly exciting opportunity for DAZN to enter a key market” given Australia’s strong consumption of sports content.
“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”, Segev said. “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”.
Foxtel chairman Siobhan McKenna explained that the acquisition represented international recognition of Foxtel’s evolution “an incumbent pay TV operator to a sports and entertainment digital and streaming leader”.
“DAZN’s backing will enhance our strategy needed, provide access to their global reach, and strengthen the infrastructure and technology to accelerate our transformation”, Foxtel Group CEO Patrick Delany said. “Most importantly, we will continue to be a proudly Australian-based business, led by local management, committed to delivering locally-produced sports and entertainment content for our audiences”.
Corrs partners Adam Foreman, Sandy Mak and James North led a team comprising partners from the firm’s corporate, TMT, tax, competition, banking, property, environment and planning, and employment practices. The firm collaborated with DAZN’s legal team, which consisted of Ben Barlow, Marie Ingham and Thomas Maw, to advise on all aspects of the transaction. Corrs also worked alongside Latham & Watkins as DAZN’s global legal advisers, which had a team headed by partners Sam Newhouse, Hector Sants and Ross Pooley.
Teams from Gibson, Dunn & Crutcher LLP and Allens advised News Corp, while Goldman Sachs acted as financial advisor.
