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News Corp Offloads Foxtel Subscription TV and Streaming Service
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Main points
- News Corp and Australian partner Telstra are selling their interest in the Foxtel subscription TV and streaming service to DAZN Group for an enterprise value of A$3.4 billion ($2.12 billion).
- The agreement includes the repayment of a $360 million shareholder loan owed to News Corp.
- News Corp will also receive a 6% stake in DAZN Group and a seat on its board of directors.
News Corp (National Weather Service) shares rose on Monday when Rupert Murdoch’s Media company and Australian telecommunications company Telstra has agreed to sell its interest in subscription TV and streaming service Foxtel to sports streaming service DAZN Group for an enterprise value of A$3.4 billion ($2.12 billion).
News Corp said as part of the deal, a A$578 million ($360 million) shareholder loan owed to the company will be repaid in full, News Corp will take a 6% stake in London-based DAZN, as well as a stake in the board.
The decision follows a “strategic and financial review of Foxtel as part of News Corp’s ongoing efforts to optimize its portfolio and simplify its corporate structure,” the company explained.
News Corp Chief Executive Officer (CEO) Robert Thomson added that the deal allows the company “to focus on other growth pillars such as Dow Jones, digital real estate and book publishing, while benefiting from the repayment of shareholder loans and an improvement in its credit profile.”
News Corp.’s shares have edged higher in recent trading and are up about 14% so far this year.
trading view
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