Tabcorp reportedly holds early talks with DAZN over possible Foxtel acquisition

Tabcorp chief executive Gillon McLachlan has reportedly sounded out DAZN over acquiring Foxtel, just 18 months after the global streaming business bought the subscription broadcaster.

The Australian Financial Review reported that Tabcorp has been advised on the matter by Barrenjoey Capital Partners and its co-executive chairman, Matthew Grounds.

The talks follow a rebound in Tabcorp’s earnings. In its results for the year to June 30, released on August 26, the wagering operator reported statutory net profit after tax of $46.3 million, up 26.5 per cent. Net profit after tax before significant items reached $71.1 million, a 43.6 per cent increase, while group revenue was $2.636 billion.

DAZN’s deal, announced in December 2024, valued Foxtel at an enterprise value of A$3.4 billion, more than seven times its FY24 EBITDA. News Corp held 65 per cent of the business before the sale and Telstra 35 per cent. When the transaction completed in April 2025, DAZN said Foxtel Group would operate as a standalone business, with Foxtel, Kayo Sports, BINGE and Hubbl keeping their brands.

Tabcorp and DAZN already work together. In June they launched WorldPlay, a free-to-play World Cup prediction game, in Australia, the United Kingdom, Germany, Spain and Austria. On Friday, Tabcorp announced that every race from this weekend’s Randwick and Caulfield meetings, including The Everest and the Caulfield Cup, will be streamed through DAZN.

Tabcorp’s FY26 investor presentation named a “standalone racing & sports media business” as one of its strategic pillars. Its stated aims include a globally integrated media platform and diversified revenue. Media revenue, which includes Sky Racing, rose 1.9 per cent to $377.8 million in FY26 on stronger international exports.

Tabcorp is also working through its proposed $267 million acquisition of BetMakers. It is targeting completion in the third quarter of FY27, subject to conditions.