Interested Buyers Reached Out to News Corp Regarding Foxtel Acquisition
Despite external interest, News Corp stated that it is not currently looking to sell off the Australian cable service.
News Corp CEO Robert Thomson has revealed that there is third party interest in Foxtel and they are exploring options with advisors due to this external interest.
The CEO did not disclose the source of interest, but some U.S. media analysts speculate it may be from private equity groups.
Thomson assured shareholders in the company’s quarterly financial statement issued on Aug. 9 that they are optimistic about the company’s future and are actively reviewing their portfolio to maximize returns.
He mentioned that recent third-party interest may lead to a potential transaction involving the Foxtel Group, which has seen positive transformations in recent years.
However, during an investor briefing on Aug. 8, Thomson stated that News Corp currently has no intention to sell Foxtel and is not planning any acquisitions.
News Corp holds a 65 percent stake in the company, with Telstra owning the remainder.
A spokesperson for Foxtel declined to comment on Thomson’s statements.
New Services Launched
In addition to their pay TV service, Foxtel recently introduced Hubbl, which includes various streaming services such as Kayo Sports, Binge, Flash, Lifestyle, and international services like WatchAFL and WatchNRL.
The aim is to unite content from free-to-air providers and paid subscriptions into a single user-friendly interface, with an initial cost of $13 million.
Despite starting as a satellite service, the majority of Foxtel’s Australian customers now stream their content. With 4.6 million paid subscribers, both Binge and Kayo have 1.5 million each.
For the March quarter, the business generated $455 million in revenue, showing a slight drop of five percent year-on-year, mainly due to currency fluctuations.
News Corp’s fourth-quarter revenues increased by six percent compared to the previous year, reaching $3.9 billion, driven by higher revenues from the ASX-listed REA Group, book sales, and continued growth of the Dow Jones service.
A potential sale of Foxtel could impact future sporting rights sales due to its appeal to subscribers.
Last year, Foxtel secured multi-year deals with several cricket boards, offering exclusive coverage of various matches and tours to Australian fans on Foxtel and Kayo Sports.
