News Corp has said that Foxtel could be up for sale announcing in its full-year 2024 financial results that there is a “third-party interest” in the Group, which owns services such as Binge, Kayo Sports and Hubbl.
“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,” said News Corp chief exec Robert Thomson in its results.
“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 advisors in light of that external interest.”
News Corp currently owns 65 per cent of Foxtel with Telstra owning the remaining share.
At the end of this financial year, Kayo and Binge achieved record paying subscribers and ended the fiscal year with more than 3.2 million total paying streaming subscribers.
As reported in the Australian Financial Review, Thomson told analysts on a call that News Corp had received “significant overture that we are naturally assessing”.
“We have full faith in the potential of Foxtel and the talented team at Foxtel,” he said. “On behalf of shareholders, we have to evaluate any interest … You’ll have to stay tuned. Not indefinitely, not perpetually, not ad infinitum.”
As advertising revenues continue to decline in the news media — News Corp reported a four per cent drop year-on-year for the 2024 financial year — the business is focusing more on REA Group, which saw its revenues grow eight per cent.
However, any Foxtel sale would significantly impact sporting rights packages, long-term content deals and more.
For instance, in December, it signed multi-year deals with the South African, English and Indian cricket boards. This will bring all competitions and all Australian men’s and women’s Test, One Day International (ODI) and T20 tours played in South Africa, England (except The Ashes) and India, exclusively available for Australian cricket fans on Foxtel and Kayo Sports. Australia’s Summer of Cricket, however, remains on Channel Seven.
