In a move that could redefine the Australian sports broadcasting landscape, DAZN has swooped in to acquire Foxtel Group for a hefty US$2.2 billion ($3.4b AUD). This seismic shift, pending the inevitable regulatory scrutiny, has significant implications for Australian sports fans and sends ripples throughout the global sports entertainment industry. For Australians, who reportedly watch more sport per capita than any other nation, this deal represents a potential turning point in how they access their favorite games.
DAZN, the UK-based sports streaming giant, adds Foxtel’s substantial 4.7 million subscribers to its global roster with this acquisition. This positions DAZN as a dominant force in the Australian market, a market DAZN CEO Shay Segev describes as an “incredibly exciting opportunity.” While Segev’s enthusiasm might be standard corporate-speak, the deal’s potential impact is undeniable.
Interestingly, Foxtel Group CEO Patrick Delany will remain at the helm, suggesting a degree of continuity for the Australian media company. Foxtel, known for its Kayo and Binge streaming services, has experienced considerable growth, transforming itself into a digital and streaming powerhouse. This acquisition is less a hostile takeover and more a strategic alignment, with News Corp and Telstra retaining minority stakes in DAZN.
DAZN’s plan involves leveraging its technology to bolster Foxtel’s existing television and streaming services. This could translate to a more streamlined and technologically advanced viewing experience for Australian subscribers. Beyond the local impact, DAZN aims to broaden the global reach of Australian sports, broadcasting them across its expansive network spanning 200 territories. This global exposure could be a game-changer for Australian leagues and athletes.
Foxtel Group Chairman Siobhan McKenna frames the agreement as international recognition of Foxtel’s evolution from a traditional pay-TV provider to a digital streaming leader. This deal aligns with DAZN’s overarching ambition to become the undisputed global home of sport. With this acquisition, DAZN’s pro-forma revenues are projected to approach US$6 billion, underscoring the magnitude of this transaction. This deal isn’t just about broadcasting rights; it’s about reshaping the future of sports consumption in Australia and potentially beyond.
