News Corp, the media conglomerate controlled by Rupert Murdoch, has announced the sale of its Australian cable TV unit, Foxtel, to the British-owned sports streaming service DAZN. The deal, valued at approximately $2.1 billion, marks a significant shift for News Corp as it moves away from traditional television to focus on its core operations in publishing and digital real estate.

Foxtel, which has been a staple in Australian media since its launch in 1995, has struggled in recent years as consumers have increasingly turned to cheaper streaming alternatives like Netflix. The sale to DAZN, a global sports streaming platform backed by Ukrainian-born billionaire Len Blavatnik, is expected to close in the second half of 2025, subject to regulatory approvals.

Under the terms of the agreement, News Corp will receive a 6% stake in DAZN and a seat on its board of directors. Telstra, which owns a 35% stake in Foxtel, will also sell its share to DAZN, receiving a 3% stake in the company. The transaction values Foxtel at seven times its 2024 EBITDA, highlighting the strategic importance of the deal for both parties.

DAZN, which streams a wide range of sports content including European football, boxing, and the NFL, sees the acquisition as a key step in its strategy to become the global home of sport. The company plans to leverage Foxtel's existing sports rights, including those for the Australian Football League and National Rugby League, to expand its presence in the Australian market.

For News Corp, the sale is part of a broader effort to streamline its portfolio and focus on its key growth segments, including Dow Jones, digital real estate services, and book publishing. The company has faced pressure from activist investors to simplify its structure and improve profitability.

Foxtel CEO Patrick Delany will continue to lead the company under DAZN's ownership, with a focus on enhancing its streaming capabilities and expanding its sports offerings. The deal also includes the repayment of shareholder loans totaling $706 million, which will improve News Corp's credit profile.

The sale of Foxtel represents a significant milestone in News Corp's transformation, allowing the company to concentrate on its strengths while maintaining a foothold in the rapidly growing sports streaming market through its stake in DAZN.