Rupert Murdoch’s News Corp. to sell Foxtel to Britain’s DAZN for $2.1 billion

Foxtel, launched by News Corp. in 1995, has weighed on the media giant’s profits for years. (Reuters)
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Updated 23 December 2024
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Rupert Murdoch’s News Corp. to sell Foxtel to Britain’s DAZN for $2.1 billion

  • News Corp. will gain a board seat and hold a 6 percent stake in DAZN
  • DAZN is a broadcasting partner for Italy’s Serie A, Spain’s LaLiga, Germany’s Bundesliga and France’s Ligue 1

SYDNEY: News Corp. has agreed to sell its Australian cable TV unit Foxtel to British-owned sports network DAZN for $2 billion (A$3.4 billion) including debt, cutting the Murdoch-controlled media empire’s exposure to a business up-ended by streaming platforms.
News Corp. will gain a board seat and hold a 6 percent stake in DAZN, a London-headquartered global streaming platform available in North America, Europe, and Asia and backed by Ukranian-born billionaire Len Blavatnik.
DAZN is a broadcasting partner for Italy’s Serie A, Spain’s LaLiga, Germany’s Bundesliga and France’s Ligue 1. It competes against traditional TV and satellite channels and provides access to a range of sports content, including American football, boxing and baseball over its streaming platform.
“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, marking another step in our long-term strategy to become the global home of sport,” said DAZN co-founder and CEO Shay Segev.
Foxtel, launched by News Corp. in 1995, has weighed on the media giant’s profits for years as the number of people who pay monthly subscriptions for its broadcast content switched to cheaper streaming options like Netflix.
It has tried to diversify by adding its own streaming services like Kayo, which livestreams local sports Australian Football League (AFL) and the National Rugby League (NRL), to win back sports broadcasting market share. It also shows ESPN.
However, its earnings have suffered with the cost of sports broadcasting rights soaring just as subscriber revenue has shrunk. To help offset the costs, Foxtel often shares rights with free-to-air broadcasters.
“Foxtel’s traditional premium pricing model has long been a point of contention, particularly in an era dominated by more affordable streaming alternatives,” said Paul Budde, an independent telco analyst.
“DAZN’s entry into the Australian market, potentially offering competitive or lower rates, could dramatically shift consumer expectations and reshape the pricing landscape.”
The AFL’s current seven-year deal with Foxtel-Channel Seven, which runs until 2031, is worth A$4.5 billion, while Cricket Australia will get A$1.5 billion from the same partners over the same time period.
Tennis rights, including the Australian Open Grand Slam, have been locked up until 2029 by Nine Entertainment, which has its own streaming service, Stan.
Nine is also in exclusive talks with Rugby Australia for broadcast rights beyond next year as the country prepares to host the Rugby World Cup in 2027.
NEWS CORP FOCUSES ON PUBLISHING
The valuation on Foxtel represents seven times its 2024 earnings before interest, tax, depreciation and amortization (EBITDA), News Corp. said in a statement.
As part of the deal, shareholder loans valued at A$578 million outstanding will be repaid in full and Foxtel’s current debt will be refinanced at closing.
News Corp. chief executive Robert Thomson said the deal would allow the company to focus on its core operations of Dow Jones, digital real estate and book publishing. News owns 61.4 percent of online real estate platform REA Group and is the parent company of publisher HarperCollins.
The deal is due to be finalized in the second half of 2025 and is subject to regulatory approval, News Corp. said. Given the overseas ownership of DAZN, the transaction will need to be cleared by the Foreign Investment Review Board (FIRB).
Blavatnik is a dual US and British citizen and the founder of Access Industries which has an investment portfolio worth more than $35 billion, according to its website.
FIRB did not immediately respond to a request for comment from Reuters.
Australian telecom Telstra has also sold its 35 percent stake in Foxtel to DAZN and will receive A$128 million in cash and a 3 percent stake in DAZN.


Australia frets over Meta halt to US fact-checking

Updated 09 January 2025
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Australia frets over Meta halt to US fact-checking

  • Australia has frequently irked social media giants with its efforts to restrict the distribution of false information or content it deems dangerous
  • Late last year, the country passed laws to ban under-16s from signing up for social media platforms

SYDNEY: Australia is deeply concerned by Meta’s decision to scrap US fact-check operations on its Facebook and Instagram platforms, a senior minister said Thursday.
The government – which has been at the forefront of efforts to rein in social media giants – was worried about a surge of false information spreading online, Treasurer Jim Chalmers said.
“Misinformation and disinformation is very dangerous, and we’ve seen it really kind of explode in the last few years,” Chalmers told national broadcaster ABC.
“And it’s a very damaging development, damaging for our democracy. It can be damaging for people’s mental health to get the wrong information on social media, and so of course we are concerned about that.”
Meta chief executive Mark Zuckerberg announced Tuesday the group would “get rid of fact-checkers” and replace them with community-based posts, starting in the United States.
Chalmers said the decision was “very concerning.”
The government had invested in trusted Australian news providers such as the ABC and national newswire AAP to ensure people had reliable sources for information, he said.
Disinformation and misinformation had become “a bigger and bigger part of our media, particularly our social media,” the treasurer said.
Australia has frequently irked social media giants, notably Elon Musk’s X, with its efforts to restrict the distribution of false information or content it deems dangerous.
Late last year, the country passed laws to ban under-16s from signing up for social media platforms. Offenders face fines of up to A$50 million ($32.5 million) for “systemic breaches.”
But in November, a lack of support in parliament forced the government to ditch plans to fine social media companies if they fail to stem the spread of misinformation.
Prime Minister Anthony Albanese said Wednesday he stood by the ban on children’s access to social media because of the impact it had on their mental health.
Asked about Meta’s fact-checking retreat, Albanese told reporters: “I say to social media they have a social responsibility and they should fulfil it.”
Australian group Digital Rights Watch said Meta had made a “terrible decision,” accusing it of acting in clear deference to incoming US president Donald Trump.
AFP currently works in 26 languages with Facebook’s fact-checking program.
Facebook pays to use fact checks from around 80 organizations globally on the platform, as well as on WhatsApp and Instagram.
Australian fact-checking operation AAP FactCheck said its contract with Meta in Australia, New Zealand, and the Pacific was not impacted by the group’s US decision.
“Independent fact-checkers are a vital safeguard against the spread of harmful misinformation and disinformation that threatens to undermine free democratic debate in Australia and aims to manipulate public opinion,” said AAP chief executive Lisa Davies.


CNN defamation trial comes at a rough time for legacy media — and for the struggling network

Updated 09 January 2025
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CNN defamation trial comes at a rough time for legacy media — and for the struggling network

  • US Navy veteran Zachary Young blames CNN for destroying his business when it displayed his face onscreen during a story that discussed a “black market” in smuggling out Afghans for high fees at the time of the Taliban takeover

NEW YORK: At a particularly inopportune time for legacy media and CNN, the news outlet is on trial in Florida this week, accused of defaming a Navy veteran involved in rescuing endangered Afghans from that country when the US ended its involvement there in 2021.
The veteran, Zachary Young, blames CNN for destroying his business when it displayed his face onscreen during a story that discussed a “black market” in smuggling out Afghans for high fees at the time of the Taliban takeover.
In a broader sense, the case puts the news media on the stand in journalism critic Donald Trump’s home state weeks before he’s due to begin his second term as president, and on the same day Facebook’s parent introduced a Trump-friendly policy of backing off fact checks. Young’s attorney, Kyle Roche, leaned into the press’ unpopularity in his opening arguments on Tuesday.
“You’re going to have an opportunity to do something significant in this trial,” Roche told jurors in Florida’s 14th Judicial Circuit Courts in Panama City on Tuesday. “You’re going to have an opportunity to send a message to mainstream media. You’re going to have an opportunity to change an industry.”
That’s the fear. Said Jane Kirtley, director of the Silha Center for the Study of Media Ethics and the Law at the University of Minnesota: “Everybody in the news media is on trial in this case.”
Actual defamation trials are rare in this country
Defamation trials are actually rare in the United States, in part because strong constitutional protections for the press make proving libel difficult. From the media’s standpoint, taking a case to a judge or jury is a risk many executives don’t want to take.
Rather than defend statements that George Stephanopoulos made about Trump last spring, ABC News last month agreed to make the former president’s libel lawsuit go away by paying him $15 million toward his presidential library. In the end, ABC parent Walt Disney Co. concluded an ongoing fight against Trump wasn’t worth it, win or lose.
In the most high-profile libel case in recent years, Fox News agreed to pay Dominion Voting Systems $787 million on the day the trial was due to start in 2023 to settle the company’s claims of inaccurate reporting in the wake of the 2020 presidential election.
The Young case concerns a segment that first aired on Jake Tapper’s program on Nov. 11, 2021, about extraction efforts in Afghanistan. Young had built a business helping such efforts, and advertised his services on LinkedIn to sponsors with funding who could pay for such evacuation.
He subsequently helped four separate organizations — Audible, Bloomberg, a charity called H.E.R.O. Inc. and a Berlin-based NGO called CivilFleet Support eV — get more than a dozen people out of Afghanistan, according to court papers. He said he did not market to — or take money from — individual Afghans.
Yet Young’s picture was shown as part of CNN story that talked about a “black market” where Afghans were charged $10,000 or more to get family members out of danger.
The plaintiff says the story’s reference to ‘black market’ damaged him
To Young, the “black market” label implied some sort of criminality, and he did nothing illegal. “It’s devastating if you’re labeled a criminal all over the world,” Young testified on Tuesday.
CNN said in court papers that Young’s case amounts to “defamation by implication,” and that he hadn’t actually been accused of nefarious acts. The initial story he complained about didn’t even mention Young until three minutes in, CNN lawyer David Axelrod argued on Tuesday.
Five months after the story aired, Young complained about it, and CNN issued an on-air statement that its use of the phrase “black market” was wrong. “We did not intend to suggest that Mr. Young participated in a black market. We regret the error. And to Mr. Young, we apologize.”
That didn’t prevent a defamation lawsuit, and the presiding judge, William S. Henry, denied CNN’s request that it be dismissed. CNN, in a statement, said that “when all the facts come to light, we are confident we will have a verdict in our favor.”
Axelrod argued on Tuesday that CNN’s reporting was tough, fair and accurate. He told the jury that they will hear no witnesses who will say they thought less of Young or wouldn’t hire him because of the story — in other words, no one to back up his contention that it was so damaging to his business and life.
Yet much like Fox was publicly hurt in the Dominion case by internal communications about Trump and the network’s coverage, some unflattering revelations about CNN’s operations will likely become part of the trial. They include internal messages where CNN’s reporter, Alex Marquardt, says unflattering and profane things about Young. A CNN editor was also revealed on messages to suggest that a Marquardt story on the topic was “full of holes,” Roche said.
“At the end of the day, there was no one at CNN who was willing to stand up for the truth,” Roche said. “Theater prevailed.”
Axelrod, who shares a name with a longtime Democratic political operative and CNN commentator, contended that the give and take was part of a rigorous journalistic process putting the video segment and subsequent printed stories together. “Many experienced journalists put eyes on these stories,” he said.
It’s still going to be difficult for CNN to go through. The network, with television ratings at historic lows, doesn’t need the trouble.
“At a moment of wider vilification and disparagement of the press, there is every reason to believe this will be weaponized, even if CNN prevails,” said RonNell Andersen Jones, a professor at the University of Utah law school and expert on libel law.
The case is putting a media organization and its key players on the stand in a very public way, which is something people don’t usually see.
“I always dread any kind of libel cases because the likelihood that something bad will come out of it is very high,” Minnesota’s Kirtley said. “This is not a great time to be a libel defendant if you’re in the news media. If we ever did have the support of the public, it has seriously eroded over the past few years.”
 


Israeli military tightens media rules over war crimes prosecution concern

Updated 9 sec ago
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Israeli military tightens media rules over war crimes prosecution concern

  • Under the new rules, media interviewing soldiers of the rank of colonel and under will not be able to display their full names or faces, similar to the rules that already exist for pilots, an Israeli military spokesperson says

JERUSALEM: The Israeli military placed new restrictions on media coverage of soldiers on active combat duty amid growing concern at the risk of legal action against reservists traveling abroad over allegations of involvement in war crimes in Gaza.
The move came after an Israeli reservist vacationing in Brazil left the country abruptly when a Brazilian judge ordered federal police to open an investigation following allegations from a pro-Palestinian group that he had committed war crimes while serving in Gaza.
Under the new rules, media interviewing soldiers of the rank of colonel and under will not be able to display their full names or faces, similar to the rules that already exist for pilots and members of special forces units, Lt. Col. Nadav Shoshani, an Israeli military spokesperson told reporters.
The interviewees must not be linked to a specific combat event they participated in.
“This is our new guideline to protect our soldiers and to make sure they are safe from these types of incident hosted by anti-Israel activists around the world,” Shoshani said.
He said that under existing military rules, soldiers were already not supposed to post videos and other images from war zones on social media “even though that’s never perfect and we have a large army.” There were also long-standing rules and guidelines for soldiers traveling abroad, he said.
Shoshani said activist groups, such as the Belgium-based Hind Rajab Foundation, which pushed for the action in Brazil, were “connecting the dots” between soldiers who posted material from Gaza and then posted other photos and videos of themselves while on holiday abroad.
Last year, the International Criminal Court issued arrest warrants against Israeli Prime Minister Benjamin Netanyahu and former Defense Minister Yoav Gallant, as well as a Hamas leader, Ibrahim Al-Masri, over alleged war crimes in Gaza, drawing outrage in Israel.
Shoshani said there had been “a handful” of cases where reservists traveling abroad had been targeted, in addition to the case in Brazil, all of which had been started by activist groups pushing authorities for an investigation.
“They didn’t open an investigation, they didn’t press charges or anything like that,” he said.


‘Offensive’ Muslim fintech ads banned in UK for showing burning banknotes

Updated 08 January 2025
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‘Offensive’ Muslim fintech ads banned in UK for showing burning banknotes

  • Posters by Wahed Invest were banned by Advertising Standards Authority after agency received 75 complaints

LONDON: Adverts by Muslim fintech company Wahed Invest have been banned in the UK for featuring burning banknotes, which the country’s advertising watchdog deemed “offensive.”

The New York-based investment platform, which targets the Muslim community, ran a series of posters across London’s transport system in September and October.

The ads showed US dollar and euro banknotes on fire alongside slogans such as “Join the money revolution” and “Withdraw from Riba” — a term referring to the Islamic prohibition of interest.

The Advertising Standards Authority said it received 75 complaints that the ads were offensive.

“The ads represented the expression that viewers’ money was ‘going up in flames’ and that images of burning money were commonly encountered,” the ASA said in a statement.

“However, regardless of whether viewers would have understood that message or understood it as a defiant act designed to show a challenge to financial institutions, the currencies which were burned in all of the ads were clearly visible as US dollar and euro banknotes.”

The advert also featured images of Muslim preacher Ismail ibn Musa Menk and Russian former professional mixed martial artist Khabib Abdulmanapovich Nurmagomedov.

Three of the posters showed Menk holding an open briefcase filled with US dollar and euro banknotes on fire, with two of them stating “Withdraw from Exploitation.”

Wahed defended the campaign, explaining that the burning banknotes symbolized money “going up in flames” due to inflation outpacing savings growth.

The company, which describe itself as an investment platform allowing consumers who were predominantly Muslim to invest in a manner which aligned with their faith and values, launched in the US in 2017 and is backed by the oil company Saudi Aramco and the French footballer Paul Pogba.

Wahed acknowledged that the currencies depicted in the ads could be viewed as symbols of national identity but argued that the imagery of burning money was a powerful reference to hyperinflation, a concept often depicted in popular culture through film and television.

A spokesperson added: “We understand that visuals like those included in our campaign can elicit strong reactions.

“While our intention was to spark thought and awareness, we recognize the importance of ensuring that messaging resonates positively with the diverse audiences that may consume them.”

The ASA said that the adverts would have been seen by many people, including people from the US and eurozone countries, who “would have viewed their nation’s currency as being culturally significant.

“Although we acknowledged Wahed Invest’s view that they had not directly criticized a specific group, and that depictions of burning banknotes were commonly encountered, we considered the burning of banknotes would have caused serious offense to some viewers,” the regulator said.

“We therefore concluded that the ads were likely to cause serious offense.”


Jailed Italian reporter in Tehran freed, says Italy

Updated 08 January 2025
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Jailed Italian reporter in Tehran freed, says Italy

ROME: An Italian journalist arrested in Iran and jailed for three weeks has been freed and is returning to Italy, Prime Minister Giorgia Meloni’s office said on Wednesday.
“The plane taking journalist Cecilia Sala home took off from Tehran a few minutes ago” following “intense work through diplomatic and intelligence channels,” Meloni’s office said in a statement.
“Our compatriot has been released by the Iranian authorities and is on her way back to Italy. Prime Minister Giorgia Meloni expresses her gratitude to all those who helped make Cecilia’s return possible, allowing her to re-embrace her family and colleagues,” her office said.
Meloni personally informed Sala’s parents of her release by telephone, it added.
Sala, 29, was arrested on December 19, soon after the United States and Italy arrested two Iranian nationals over export violations linked to a deadly attack on American servicemen.
The journalist, who writes for the Italian daily Il Foglio and is the host of a news podcast produced by Chora Media, was kept in isolation in Tehran’s Evin prison.
Sala told her family she was forced to sleep on the floor in a cell with the lights permanently on.
Italy and Iran summoned each other’s ambassadors last week after Rome warned that efforts to secure her release were complicated.
Sala traveled to Iran on December 13 on a journalist’s visa. She was arrested six days later for “violating the law of the Islamic Republic of Iran,” said the country’s culture ministry, which oversees and accredits foreign journalists.
She had been due to return home the following day.
On Monday, Iran denied any link between Sala’s arrest and that of Iranian national Mohammad Abedini, detained in Italy in December at the behest of the United States over export violations linked to a deadly attack on US servicemen.