(Reuters) – Rupert Murdoch's News Corp (NASDAQ: ) said on Monday it will sell its Australian TV and streaming unit Foxtel to Britain's top sports broadcaster and entertainment platform DAZN for A$3.4 billion ($2.1 billion), including debt. .
As part of the deal, Foxtel's current debt will be repaid upon closing and News Corp will hold 6% of DAZN, the London-headquartered global streaming platform backed by billionaire Len Blavatnik.
The sale frees News Corp, which owns print mastheads such as the Wall Street Journal, of its involvement in assets that have struggled to cope in an era dominated by streamers such as Netflix (NASDAQ:).
Foxtel has weighed in on News Corp's profits for years as the number of people who pay a monthly fee switch from streaming content to cheaper streaming options. Foxtel has launched a streaming service that costs less than its traditional service.
News Corp will get one board seat at DAZN, which launched in 2016 and is ramping up its efforts to become a global streaming giant like Apple (NASDAQ: ) TV.
The US firm announced in early August it could sell Foxtel after it found a way.
Australian telecommunications company Telstra (OTC:) will also divest 35% of its stake in Foxtel, for A$128 million, and will emerge as a 3% shareholder in DAZN.
The deal remains subject to regulatory approvals and is expected to close in the second quarter of 2025.
ASX-listed News Corp shares gained 1% to A$49.65 in early trade while Telstra shares traded 0.4% higher against a rising benchmark index.
($1 = 1.5997 Australian dollars)