News Corp considers Foxtel sale

Rupert Murdoch’s News Corp said it was mulling the deal in a trading update for its fourth quarter.

Robert Thomson, News Corp Chief Executive, said that potential buyers had emerged for Foxtel during a review of the company’s assets.

“That review has coincided recently with third-party interest in a potential transaction involving the Foxtel Group, which has been positively transformed in recent years,” Thomson said.

Foxtel Group operates legacy cable and satellite TV businesses in Australia, as well as sports streamer Kayo, entertainment streaming platform Binge, and OTT streaming aggregator Hubbl.

Like many legacy media companies, it has been challenged by the arrival of global streaming platforms such as Netflix, Disney+ and Prime Video.

News Corp reported a revenue growth of 6% to $2.58bn in the fourth quarter, which the company attributed to the performance of its Dow Jones unit, real estate listing and book publishing businesses.

But revenue from its news media unit, which includes Foxtel owner News Corp Australia, News U.K., and the New York Post, dropped 5% amid a decline in advertising and subscription revenues.

Foxtel is 65% owned by News Corp, while Australian telecom company Telstra holds the remaining 35%.