News Corp and Telstra agree sale of Foxtel to sports streaming service DAZN for US$2.2bn

News Corp and Telstra will sell Foxtel in a US$2.2bn (A$3.4bn) deal, the comanies announced on Monday.

DAZN, a global sports streaming service, has agreed to buy a majority stake in the Australian pay television business, including the Kayo and Binge streaming services and the new Hubbl platform, subject to regulatory approval.

Under the agreement, Foxtel will continue to be run by its local chief executive, Patrick Delany, who said he was grateful for News Corp’s support to reinvigorate the platform.

“Today’s announcement is a natural evolution for the Foxtel Group,” he said. “[DAZN] are experts in the sports media business and can play a significant role in supporting Foxtel as the business grows its streaming capabilities.”

Foxtel had for decades been a highly lucrative revenue stream for News Corp but the media company had looked to offload the pay television service under competition from growing numbers of streaming services.

Australians have dropped subscriptions to the Foxtel Now streaming service, while flocking to Kayo and Binge, according to disclosures in its August earnings results.

More to come