News Corp & Telstra Announce Foxtel-Fox Sports Merger

News Corp & Telstra Announce Foxtel-Fox Sports Merger
SHARE
THIS



News Corp and Telstra have announced their intention to combine Foxtel and Fox Sports Australia into a new company.

Subject to the conclusion of definitive agreements, regulatory review and satisfaction of certain other conditions, News Corp will have 65 per cent shareholding in the new company and Telstra will have 35 per cent.

Furthermore, News Corp will be responsible for appoint the chairman and the majority of the new company’s board and senior executives, while Telstra will appoint the remaining directors.

A joint statement by Telstra and News Corp said the new company will be positioned to meet the needs of Australian viewers and create greater choice than ever before by:

  • investing in Australian written, produced and directed programming; delivering a wider range of new and innovative products and packages across devices and platforms;
  • continuing to invest in premium content and technology to meet growing consumer demand;
  • expanding distribution channels for the sale of Foxtel and Fox Sports products; and
  • developing greater operating efficiencies across the combined businesses, including distribution.

The proposed arrangements will better position the new company for an initial public offering in the future, with News Corp having a majority stake, according to the statement.

If the transaction between Telstra and News Corp is concluded on the proposed terms, News Corp expects to consolidate the new company into its financial statements.

News Corp CEO Robert Thomson said the proposed restructuring of Foxtel and Fox Sports will unlock value for News Corp shareholders and provide a clearer vision into the depth  and strength of our Australian assets.

“The new structure will simplify management control and ensure that the company is best placed to leverage the skills of its talented Australian employees and program-makers,” he said.

“There is no doubt that the world of content is becoming more complicated and competitive, and it is important that Australia has a strong local platform for its great sports and for homegrown creativity, as well as a showcase for international programs.”

Telstra CEO Andy Penn said the transaction would provide the new company with a strong

platform to flexibly respond to significant changes in the media, communications and content markets.

“Our strategically significant investment in the new company will be an important part of Telstra’s media strategy,” he said.

“Under this arrangement Telstra will continue to support the company with our broadcast re-seller arrangements, which is a major strategic component for us.

“More people are watching more media on more devices for more hours every day of the week, so the demand for media and for content is only going to grow.

“With a strong premium content proposition and scale subscriber base, the new company will be well-positioned to deliver a compelling customer experience.”

At this stage, certain key commercial terms of the proposed transaction have been agreed on a non-binding basis.

Telstra and News Corp have signed a binding process agreement under which they will prepare long-form agreements to give legal effect to the commercial principles.

Telstra and News Corp will work to finalise the transaction, including obtaining regulatory approval, to be completed in the first half of 2018.

The announcement comes after News Corp reported a $816.8 million loss for the last financial year, while Telstra’s full year profit plunged by 33 per cent to $3.9 billion.

Please login with linkedin to comment

Latest News

Zenith Sydney MD Karen Halligan To Depart
  • Media

Zenith Sydney MD Karen Halligan To Depart

Zenith Sydney's Karen Halligan has pulled-up stumps, although that's not to infer bad light had anything to do with it.

by B&T Magazine

B&T Magazine
PR Agency Hotwire Rebrands
  • Marketing
  • Media

PR Agency Hotwire Rebrands

PR agency Hotwire has rebranded, yet sadly not to "Hot Cocks Who Rock Your Socks Off". Which would've been far cooler.

Challenger Agency VCCP Wins Creative Account For Torrens University Australia
  • Advertising

Challenger Agency VCCP Wins Creative Account For Torrens University Australia

After a competitive pitching process involving five agencies, Torrens University Australia has appointed challenger agency VCCP as its new brand strategy partner and creative agency for 2018. Acclaimed for its work on dynamic brands including ING and Compare the Market in the financial services sector, Laureate Australia CMO Anne Da Cunha said VCCP’s reputation as […]

GumGum Appoints Ansible’s Sarah Baskerville As Victorian Sales Director
  • Advertising
  • Technology

GumGum Appoints Ansible’s Sarah Baskerville As Victorian Sales Director

AI advertising company GumGum has announced the appointment of Sarah Baskerville as its sales director for Victoria. Baskerville joins GumGum from Ansible, where she spent two years as its Melbourne mobile director. Prior to joining Ansible, she was head of specialist sales and partnerships at News Corp Australia, and also held a number of sales […]

The Diamond Concierge Gives Away $85K Ring In Campaign By McCann Queensland
  • Advertising
  • Campaigns

The Diamond Concierge Gives Away $85K Ring In Campaign By McCann Queensland

McCann Queensland’s second instalment of ‘The 5th C’ campaign launched over the weekend for online diamond retailer The Diamond Concierge, which received over 47million views around the world in the first 48 hours of it being released. In this second phase of the campaign, The Diamond Concierge gave away an $85,000 diamond ring, with Gold […]

Sparro Recruits Key Account Director Following Client Wins
  • Marketing

Sparro Recruits Key Account Director Following Client Wins

Digital marketing agency Sparro has announced the appointment of Hannah Jones (pictured above) as a key account director following a spate of client wins. Jones joins Sparro’s senior team alongside founders Cameron and Morris Bryant, overseeing a portfolio of accounts that includes Webjet, Domino’s Pizza, TAFE NSW, Temple & Webster, F45 Training and Bing Lee. […]

Women’s Health’s Jacqui Mooney On Driving A Women’s Brand In An Evolving Industry
  • Media

Women’s Health’s Jacqui Mooney On Driving A Women’s Brand In An Evolving Industry

In an industry facing change, Jacqui Mooney, editor of Women’s Health believes brands such as hers will continue to be a constant. Please note: this article was contributed by Magazine Networks. The magazine industry may be seeing substantial change but Jacqui Mooney has a goal that remains firm: to create happier, healthier lives for Australian women. […]

Why Consumer Brands Are Failing Aussie Mums
  • Marketing
  • Opinion

Why Consumer Brands Are Failing Aussie Mums

Is your game chainsaws or large marlin wall-hangings? Can't seem to attract the mums? This couldn't come soon enough.

Opinion

by B&T Magazine

B&T Magazine
Network Ten Creditors Approve CBS Deal
  • Media

Network Ten Creditors Approve CBS Deal

It seems the fight for Ten between CBS and media moguls Lachlan Murdoch and Bruce Gordon may finally be over.

by B&T Magazine

B&T Magazine
MKTG Signs Exclusive Commercial Partnership With PlayersVoice
  • Marketing
  • Media

MKTG Signs Exclusive Commercial Partnership With PlayersVoice

MKTG has announced it has signed an exclusive commercial partnership with newly-launched sports storytelling site PlayersVoice.com.au – an agreement that will see the agency move into a new territory of sports marketing. The partnership between MKTG and PlayersVoice will see the business managing brand partnership opportunities for the new platform; working with clients to deliver […]

Domo Introduces New Data Security Software Solution
  • Marketing
  • Technology

Domo Introduces New Data Security Software Solution

Domo has announced it has introduced new cloud security technology for its Bring Your Own Key (BYOK) software, which includes unique capabilities like rolling generation of data encryption keys and a built-in kill switch. Domo BYOK is the first BYOK enterprise software solution for cloud analytics and business intelligence, and builds on the company’s existing security, compliance and […]

Shopper Media Group Grows Sydney & Melbourne Sales Teams
  • Advertising
  • Marketing
  • Media

Shopper Media Group Grows Sydney & Melbourne Sales Teams

Shopper Media Group (SMG) has continued to grow its Sydney and Melbourne sales teams to keep up with the demand for Smartlite Panels for shopping centres. Ashley Munro joins SMG as group sales manager for Sydney, having previously worked in a similar role at NOVA Entertainment. Laura Mason has been appointed as SMG’s business manager […]

RIO DE JANEIRO, BRAZIL - AUGUST 14:  Usain Bolt of Jamaica competes in the Men's 100 meter semifinal on Day 9 of the Rio 2016 Olympic Games at the Olympic Stadium on August 14, 2016 in Rio de Janeiro, Brazil.  (Photo by Cameron Spencer/Getty Images)
  • Advertising
  • Media

Olympics, Census Prove Tough Hurdles For Media Agencies: SMI

Australia’s media agency market has experienced another tough month in August, according to the latest data by Standard Media Index (SMI). SMI noted the softer demand this time around was primarily due to the Rio Olympics and Census providing abnormal bookings last year, resulting in demand for August 2017 so far being back 12.1 per […]