Key Highlights:
- Telstra to divest its 35% stake in Foxtel to DAZN, alongside News Corp’s 65% divestment.
- Telstra will receive $128 million AUD in cash for the repayment of shareholder loans.
- Telstra will retain a 3% stake in DAZN.
- The transaction won’t materially impact Telstra’s FY25 guidance or current year profit/loss.
Melbourne, Australia – 23 December 2024 – Telstra Corporation Limited (ASX:TLS) has announced the sale of its 35% stake in Foxtel to DAZN, a leading global sports streaming platform. This follows a strategic review initiated by News Corp, which also announced the divestment of its 65% stake earlier today.
Key Terms of the Sale:
- $128 million AUD cash received by Telstra for shareholder loans repayment.
- Telstra will hold a minority stake of 3% in DAZN, gaining exposure to the future growth of the sports streaming platform.
Strategic Rationale
The deal is in line with Telstra’s ongoing strategy to streamline its operations, while benefiting from DAZN’s focus on expanding its global sports streaming offering.
Telstra CEO Vicki Brady remarked:
“Foxtel has evolved into a world-class streaming service, and I believe this is the right time for us to step back. We look forward to seeing Foxtel continue to thrive under DAZN’s ownership, as part of a global sports and entertainment powerhouse.”
What’s Next?
The deal is set to complete in the first half of 2025, subject to regulatory approvals. While the transaction does not impact Telstra’s current financial outlook, it marks the end of a significant chapter for Telstra in the Australian media landscape.
