Australian pay-TV operator and owner of streamer Binge assessing future following initial overtures in August
Rupert Murdoch’s News Corp has confirmed it is in “active discussions” around the potential sale of its Australian pay-TV service Foxtel.
News first emerged in August that the Murdoch-led firm was considering selling the Sydney-based outfit, which is also home to streamer Binge, after receiving an approach for the business.
Those reports have now been confirmed by News Corp’s chief exec Robert Thomson, who told an investor call that the company “continues to examine changes to maximise our overall value for shareholders”.
He added: “It is true to say we are in active discussions over the future of Foxtel, and we believe all who have studied the worth of our individual assets and our current share price can easily see that that price does not reflect the collective value of our businesses.”
Foxtel, which is 35% owned by local telco Telstra, is Australia’s biggest pay-TV operator with 1.2m subscribers, although that total has been in decline over the past decade.
The company reported a 3% rise in revenue in Q3, while it was valued at between $1.24bn (£970m) and $1.86bn in August by Reuters.
It has retained numerous sports rights including international cricket and the Australian Football League, which are also shared with its streamer service Kayo Sports.
Foxtel also operates smart TV device Hubble and general entertainment streamer Binge, the home of hit romcom Colin From Accounts and forthcoming dramedy The Last Anniversary.
It has also been able to offer HBO programming via an output deal with Warner Bros. Discovery, although it is unclear whether that deal will be extended should WBD launch its Max streamer in Australia.
News Corp’s decision to explore its options comes as both Foxtel and Binge face growing competition from streamers such as Netflix, Disney+ and Amazon’s Prime Video in Australia.
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