News Corp could be selling the Foxtel Group — the Australian pay TV and streaming company behind Foxtel and Binge.
In a statement about the company’s 2023/24 financial results, Chief Executive Robert Thomson said an unnamed “third party” had expressed “interest in a potential transaction”.
News Corp owns 65% of the Foxtel Group. Telstra owns the rest.
Here’s what you need to know.
Foxtel
The Foxtel Group is one of Australia’s largest media companies.
Its products include traditional pay TV provider Foxtel and streaming services like Kayo and Binge.
The group also recently launched Hubbl, a streaming service aggregator like Fetch TV and Apple TV.
The Foxtel Group’s streaming services have around 3.2 million subscribers.
News Corp
News Corp – a multinational media and publishing company – is the Foxtel Group’s parent company. Founded by billionaire Rupert Murdoch, News Corp owns several other Australian media products like news.com.au.
News Corp’s profits have fluctuated in recent years. Its 2023/24 results, released today, are better than last year but still lower than previous years.
Last year’s low News Corp profits were partly attributed to the Foxtel Group making less money.
Thomson said the offer to buy Foxtel “coincided” with discussions about how the company is “maximising returns for shareholders”.
News Corp is a public company, which means it has shareholders — people who’ve bought a stake in it.
Public companies can pay shareholders part of their profits, called dividends.
Also, successful companies’ shares typically increase in value, so shareholders can sell them for a profit.
Telstra
Telstra owns the remaining 35% of the Foxtel Group.
TDA reached out to the telco about the potential sale of Foxtel.
A Telstra spokesperson said: “There is no assurance regarding the timing of any action or transaction, nor that the strategic review will result in a transaction or other strategic change.”
