SYDNEY: News Corp. has agreed to sell its Australian cable TV unit Foxtel to British-owned sports network DAZN for $2 billion (A$3.4 billion) including debt, cutting the Murdoch-controlled media empire’s exposure to a business up-ended by streaming platforms.
News Corp. will gain a board seat and hold a 6 percent stake in DAZN, a London-headquartered global streaming platform available in North America, Europe, and Asia and backed by Ukranian-born billionaire Len Blavatnik.
DAZN is a broadcasting partner for Italy’s Serie A, Spain’s LaLiga, Germany’s Bundesliga and France’s Ligue 1. It competes against traditional TV and satellite channels and provides access to a range of sports content, including American football, boxing and baseball over its streaming platform.
“Australians watch more sport than any other country in the world, which makes this deal an incredibly exciting opportunity for DAZN to enter a key market, marking another step in our long-term strategy to become the global home of sport,” said DAZN co-founder and CEO Shay Segev.
Foxtel, launched by News Corp. in 1995, has weighed on the media giant’s profits for years as the number of people who pay monthly subscriptions for its broadcast content switched to cheaper streaming options like Netflix.
It has tried to diversify by adding its own streaming services like Kayo, which livestreams local sports Australian Football League (AFL) and the National Rugby League (NRL), to win back sports broadcasting market share. It also shows ESPN.
However, its earnings have suffered with the cost of sports broadcasting rights soaring just as subscriber revenue has shrunk. To help offset the costs, Foxtel often shares rights with free-to-air broadcasters.
“Foxtel’s traditional premium pricing model has long been a point of contention, particularly in an era dominated by more affordable streaming alternatives,” said Paul Budde, an independent telco analyst.
“DAZN’s entry into the Australian market, potentially offering competitive or lower rates, could dramatically shift consumer expectations and reshape the pricing landscape.”
The AFL’s current seven-year deal with Foxtel-Channel Seven, which runs until 2031, is worth A$4.5 billion, while Cricket Australia will get A$1.5 billion from the same partners over the same time period.
Tennis rights, including the Australian Open Grand Slam, have been locked up until 2029 by Nine Entertainment, which has its own streaming service, Stan.
Nine is also in exclusive talks with Rugby Australia for broadcast rights beyond next year as the country prepares to host the Rugby World Cup in 2027.
NEWS CORP FOCUSES ON PUBLISHING
The valuation on Foxtel represents seven times its 2024 earnings before interest, tax, depreciation and amortization (EBITDA), News Corp. said in a statement.
As part of the deal, shareholder loans valued at A$578 million outstanding will be repaid in full and Foxtel’s current debt will be refinanced at closing.
News Corp. chief executive Robert Thomson said the deal would allow the company to focus on its core operations of Dow Jones, digital real estate and book publishing. News owns 61.4 percent of online real estate platform REA Group and is the parent company of publisher HarperCollins.
The deal is due to be finalized in the second half of 2025 and is subject to regulatory approval, News Corp. said. Given the overseas ownership of DAZN, the transaction will need to be cleared by the Foreign Investment Review Board (FIRB).
Blavatnik is a dual US and British citizen and the founder of Access Industries which has an investment portfolio worth more than $35 billion, according to its website.
FIRB did not immediately respond to a request for comment from Reuters.
Australian telecom Telstra has also sold its 35 percent stake in Foxtel to DAZN and will receive A$128 million in cash and a 3 percent stake in DAZN.
Rupert Murdoch’s News Corp. to sell Foxtel to Britain’s DAZN for $2.1 billion
https://arab.news/4zsnv
Rupert Murdoch’s News Corp. to sell Foxtel to Britain’s DAZN for $2.1 billion
- News Corp. will gain a board seat and hold a 6 percent stake in DAZN
- DAZN is a broadcasting partner for Italy’s Serie A, Spain’s LaLiga, Germany’s Bundesliga and France’s Ligue 1
Meta to charge Arab advertisers extra fee for reaching European audiences
- US tech giant told advertisers it will add fees ranging from 2 to 5 percent on image and video ads delivered on its platforms to offset digital service taxes
- Charges are determined by where the audience is located, not where the advertiser is based
LONDON: Meta will from July 1 impose location-based surcharges on advertisers targeting audiences in six European countries, a move that will directly affect Arab businesses that run campaigns across the continent.
The US tech giant announced it will add fees ranging from 2 to 5 percent on image and video ads delivered on its platforms, including Facebook, Instagram and WhatsApp, to offset digital service taxes imposed by individual governments.
Crucially, the charges are determined by where the audience is located, not where the advertiser is based.
That means Saudi, Emirati, Egyptian or other Arab companies paying to reach consumers in the UK, France or Italy will face the additional costs regardless of their own country’s tax arrangements with Meta.
Fees will apply at 2 percent for ads reaching UK audiences, 3 percent for France, Italy and Spain, and 5 percent for Austria and Turkiye.
“If you deliver $100 in ads to Italy, where there is a 3% location fee, you will be charged $100 (ad delivery), plus $3 (location fee), for $103 total,” the company wrote in an email to an advertiser initially reported by Bloomberg. “Note that any applicable VAT will be calculated on top of the total amount.”
The taxes have been introduced at different points, starting with France in 2019, though not the EU as a bloc.
Many tech companies report substantial sales in Europe and millions of users but pay minimal tax on profits. The goal is to claw back locally derived economic value, Bloomberg reported.
The move follows similar decisions by Google and Amazon, which have also begun passing European digital tax costs on to advertisers.
For Arab brands with growing European footprints, particularly in fashion, travel, hospitality and media, the new fees add another layer of cost to campaigns already subject to currency and targeting complexities.
Digital services taxes, levied as a percentage of revenues earned by major tech platforms in individual countries, have drawn criticism from Washington, which argues they unfairly target US companies.
Meta has been reached for comments.
