Foxtel’s new owner welcomes Saudi dollars in landmark deal

The sports investment arm of Saudi Arabia’s sovereign wealth fund has taken a minority stake in streaming service DAZN, the UK-based company that’s buying pay TV service Foxtel from News Corporation for an enterprise value of $3.4 billion.

The UK sports streamer has had a long-running relationship with Saudi Arabia, which will now be reinforced by SURJ Sports Investment (SURJ), a unit of Saudi Arabia’s $1 trillion Public Investment Fund, taking a minority stake in DAZN.

Financial terms of the deal weren’t disclosed, though Bloomberg has previously reported SURJ would invest at least $US1 billion ($1.6 billion).

DAZN, controlled by British billionaire Len Blavatnik, made the move to buy Foxtel in December. Under the terms of that deal, which is subject to regulatory approval and is expected to be completed in the second half of fiscal 2025, Foxtel’s current debt will be refinanced, while News Corp’s loans to the company of $578 million will also be paid off.

SURJ is led by Australian Danny Townsend, the former chief executive of the parent company of domestic football in Australia, the Australian Professional Leagues. He stood down from that role to join SURJ in 2023.

DAZN boss Shay Segev said the company and SURJ will establish DAZN MENA, a joint venture that will work to broaden fans’ access to live and on-demand sports content, in a statement on LinkedIn.

“As the only truly global entertainment platform dedicated to sport, DAZN is ideally positioned to maximise the reach and accessibility of sports, while delivering the best entertainment experience to a global community of passionate fans.”

“This is a milestone partnership for the group, which is bound to transform the sports entertainment landscape in Saudi Arabia and the wider region.”