British sports streaming platform DAZN Group has lined up a A$1.8 billion loan to pay for its acquisition of Foxtel Group.
Nine banks including Commonwealth Bank, Societe Generale and Citigroup are believed to be underwriting the loan, reported Bloomberg.
Last month, DAZN agreed to buy Foxtel Group whose brands include Kayo, Foxtel, Binge and Hubbl, in a deal that valued the company at A$3.4 billion, representing more than 7x fiscal 2024 Foxtel EBITDA.
Foxtel’s shareholders, News Corp and Telstra, will remain involved with the entity. The Foxtel Group is owned 65% by News Corp and 35% by Telstra.
News Corp will hold a minority equity interest in DAZN of approximately 6% as well as one seat on the DAZN Board. Telstra will take a minority stake in DAZN of approximately 3%.
“Kayo and Foxtel provide Australian sports fans with access to the best Australian and international sport and shows, including AFL, NRL and Cricket with 4.7 million subscribers,” said Foxtel Group CEO Patrick Delany.
DAZN noted that Foxtel will “maintain its local character” and will continue to be led by Delany.
The deal, which is subject to regulatory approval is expected to close in the middle of this year, and is a major acquisition for DAZN which is owned by British billionaire Len Blavatnik.
Shay Segev, Chief Executive Officer of DAZN, added, “Australians watch more sport than any other country in the world, which makes this deal an incredibly exciting opportunity for DAZN to enter a key market. Foxtel is a successful business that has undergone a remarkable digital transformation in recent years.”
The privately owned DAZN, founded in 2016, has more than 3,000 employees and says it generated $3.2 billion (A$5.09 billion) in revenue in 2023. The addition of Foxtel to DAZN will bring the combined company’s pro-forma revenues to around the A$9.55 billion mark.
