DAZN Bought Foxtel for A$3.4bn. Eighteen Months Later, Tabcorp Is Asking If It's for Sale
Tabcorp has held early talks with DAZN about buying Foxtel, according to the AFR. It says a lot about how hard pay TV is to run, and about where Australia's wagering giant thinks its growth will come from.
Commentary · Humour Real news, with jokes. The facts are sourced below; the snark is ours.
Most big acquisitions come with a honeymoon period. Foxtel’s appears to have lasted about a year and a half.
Tabcorp chief executive Gillon McLachlan has held preliminary discussions with DAZN about a possible acquisition of Foxtel, the Australian Financial Review reported on Friday. DAZN, the global sports streaming group controlled by billionaire Len Blavatnik, only took ownership of Foxtel in April 2025.
The AFR stressed the talks were early. People briefed on the matter said they had not got anywhere near a price. Tabcorp, advised by Barrenjoey Capital Partners and its co-executive chairman Matthew Grounds, declined to comment. No deal has been announced.
Why DAZN might listen
DAZN’s purchase, announced in December 2024, valued Foxtel at an enterprise value of A$3.4 billion, more than seven times its 2024 earnings before interest, tax, depreciation and amortisation, according to The Straight. News Corp owned 65% of the business and Telstra 35%. DAZN bought it after News Corp could not float it, Mediaweek notes.
Now, according to Mediaweek’s summary of the AFR’s reporting, sources say DAZN found Foxtel “far more complex than it had expected”. The rest of DAZN is built around sports streaming. Foxtel is a different machine: satellite and cable subscribers, the Kayo and BINGE streaming apps, the Hubbl device, and a long list of content deals.
Foxtel’s new chief executive, Peter O’Connell, is reported to be raising questions about the future of the broadcasting business. One AFR source described him as “an M&A man, not a long-term operational CEO.” That is not usually what people say about a business its owner plans to keep for decades.
Why Tabcorp might want it
Tabcorp’s side of the story is about growth. People briefed on the matter told the AFR that McLachlan is considering a company-transforming deal because growth in the core wagering business is limited, competition is intense and the Albanese government is weighing more restrictions on gambling.
The numbers give him room to think big. In its results for the year to June 30, Tabcorp reported statutory net profit after tax of A$46.3 million, up 26.5%, and revenue of A$2.636 billion, The Straight reports. Its media arm, which includes Sky Racing, brought in A$377.8 million.
The two companies already work together. Tabcorp arranged for races from Randwick and Caulfield, including The Everest and the Caulfield Cup, to stream through DAZN, and the pair launched a free World Cup prediction game earlier this year. Tabcorp is also still working through its proposed A$267 million purchase of BetMakers.
The awkward question
A wagering company owning the country’s main subscription sports broadcaster would draw scrutiny, especially while the Albanese government weighs more restrictions on gambling. Any deal would face hard questions from regulators and politicians.
For now this is a conversation, not a transaction. But it shows how quickly the logic of a big media deal can change. Eighteen months ago, Foxtel was DAZN’s gateway to Australian sport. Today, at least one potential buyer is already knocking on the door.