Foxtel sale may be announced before Christmas
News Corp is finalising a sale for its majority stake in Foxtel, with reports suggesting that the deal may be announced to the ASX early next week.
UK-based sports streaming platform, DAZN, has been in talks with News Corp for months over a potential sale, according to numerous sources.
Earlier this month, the AFR reported DAZN had tapped the Bank of America’s telecommunications and media team to advise a potential bid for News Corp’s 65% share in the subscription TV company. DAZN chief, Shay Segev, was spotted in Australia last week, fuelling speculation a deal was imminent.
Now, it appears a deal could be disclosed to the stock market as early as Monday, according to Capital Brief, which cites “two people briefed on negotiations who spoke on the condition of anonymity to discuss confidential matters”.
DAZN launched in 2015 and is owned by Access Industries, an investment group founded by billionaire Sir Len Blavatnik.
The sports streamer boasts 20 million subscribers across 200 countries – with the rights to over 75 different sporting competitions. The Foxtel purchase would be a pain-free way for the UK streamer to bolster its offering with AFL, NRL, and international cricket rights.
News of a potential Foxtel sale was first announced by News Corp’s CEO Robert Thomson, who flagged “third-party interest in a potential transaction involving the Foxtel Group” during the company’s fourth-quarter results in August, telling the company’s investors “we are evaluating options for the business with our advisors in light of that external interest”.
Telstra, which owns the remaining 35% stake in Foxtel, backed any potential sale at its annual general manager in October, with chairman Craig Dunn calling it “a sensible move or decision to make on behalf of shareholders”, noting “from time to time the importance of certain assets and their contribution to the value proposition we make to our customers does change”.
Telstra CEO, Vicki Brady, doubled down during a later investment call with reporters, saying “if it got to the stage where there was an offer for Foxtel at the right level of value, then yes, we would be supportive of that with News Corp”.
Julian Ogrin, the chief of Foxtel’s streaming and advertising division, told Mumbrella in August the decision to sell is “one for the shareholders”.
“All that is really for them to decide,” he said. “[News Corp] are very committed to the Foxtel Group and where our performance is. What they decide is really is in their hands.
“Us as management, we’re just going to continue on and provide the great service that we’re providing and the growth that we’ve been seeing.”
Last month, News Corp confirmed the talks were still ongoing, noting in its quarterly results: “In response to third party interest, the Company is continuing to assess strategic and financial options for the Foxtel Group, including its capital structure and assets.”
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You have just reminded me on how costly Foxtel is and I need to down scale so I’m going to check out plans now cause having Netflix and Stan which are so much cheaper. I have been with this since it was Galaxy so 30 odd years and you get no rewards as such it’s way to expensive.
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I would like foxtel it’s just too expensive in todays climate good and rent before tv. Whoever ends up with Foxtel don’t price it out of the market .
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