News Corp hangs out ‘for sale‘ sign at Foxtel

News Corporation is mulling a potential sale of its pay television service Foxtel.

The media conglomerate on Friday said it had already attracted “third-party interest” in the platform, which owns streaming brands Binge, Kayo Sports and its recently launched TV aggregator Hubbl.

News Corp has a 65 per cent stake in Foxtel, with the remained held by telco Telstra.

Releasing its full-year results, News Corp said the decision to sell followed a strategic review of the global business.

“We are confident in the company’s long-term prospects and are continuing to review our portfolio with a focus on maximising returns for shareholders,” it said.

“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.

“We are evaluating options for the business with our advisers in light of that external interest.”

News Corp added there was no assurance regarding the timing of any action or transaction, or that the review would result in a deal or other strategic change.

News Corp’s results show Foxtel’s streaming subscription revenues represented 32 per cent of total circulation and subscription revenues in the fourth quarter — up from 29 per cent the previous year. At June 30, it had 4.7 million subscribers, up one per cent from a year earlier.

It attributed the growth to its Binge and Kayo streaming services, which partially offset a decline in residential broadcast subscribers.

Foxtel in recent years has shifted away from its pay TV base to focus on gaining more streaming rights by building sports network Kayo and entertainment service Binge.

Both now account for more than 3.15 million subscribers.

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