Investing.com-- News Corp (NASDAQ:NWSA) said on Monday it will sell Australian television unit Foxtel Group to British sports streaming platform DAZN Group for an enterprise value of A$3.4 billion ($2.1 billion).
The sale comes as Foxtel- once a dominant player in Australia- grapples with heightened competition in the streaming era, especially from players such as Netflix (NASDAQ:NFLX).
News Corp said the sale was part of the media conglomerate’s efforts to streamline its businesses and also unlock “long-term shareholder value.”
The conglomerate will take a 6% stake in DAZN as part of the deal, and also hold a seat on its board of directors.
News Corp said shareholder loans worth A$578 million will be repaid in cash after the closing of the deal.
Australian telecommunications giant Telstra (OTC:TLGPY) will also sell its minority interest in Foxtel for a minority stake in DAZN of about 3%, and will also have about A$128 million worth of shareholder loans repaid.
The sale comes after News Corp signaled in August it was considering selling off Foxtel, as the unit clocked a steady decline in revenue and profit amid increased competition from streaming platforms.
While Foxtel launched its own streaming services alongside its set-top boxes, this did little to offset a broader decline in sales.
The deal, which is subject to regulatory approval, allows DAZN to enter the Australian market, which the sports streamer sees as a “key” market.