What does the future hold for Sky News Australia after Foxtel’s sale?
News Corp's Year-End Surprise: Foxtel Sale to DAZN
DAZN's Dominance in Streaming
As 2024 drew to a close, News Corp made a bombshell announcement: the sale of Foxtel Group to sports streaming giant DAZN for $3.4 billion. This move marks an end to three decades of News Corp's cable television dominance, with DAZN acquiring Foxtel's 65% stake and Telstra relinquishing its 35% share.
While primarily known for its sports streaming prowess, DAZN's acquisition includes non-sporting assets like streaming services Binge and Flash.
The Fate of Sky News Australia
Notable by its absence from the DAZN deal was Foxtel's biggest non-sport channel, Sky News Australia. Questions linger over the future of this conservative news channel, which features prominent figures like Andrew Bolt and Rita Panahi.
According to a Foxtel spokesperson, "Sky News Australia remains 100% owned by News Corp Australia and is not part of the sale." However, the channel's licensing agreement for the "Sky News" name expires in late 2025 or 2026.
"Fox News Australia" is reportedly among the potential alternative names being considered.
DAZN's Future Plans
With this acquisition, DAZN takes over Foxtel Group, refinances its debt, and pays off Telstra's loans. Both News Corp and Telstra will receive equity interests in DAZN, and News Corp will gain a seat on its board of directors.
DAZN's long-term strategy remains uncertain, but speculations suggest potential involvement from the Saudi Arabian Public Investment Fund, which has made significant investments in sports and entertainment.