News to write down combined Foxtel and Fox Sports by up to US$1 billion ahead of Telstra agreement

News Corp has indicated it expects to write down its investment in Foxtel by up to a billion US dollars, as the company concludes a deal with Telstra that will see the pay TV operator merge with Fox Sports Australia.

In a filing with the US Securities and Exchange Commission this morning, News Corporation said it expects to record between US$700 million and US$1 billion in write downs related to the combined business ahead of the deal, which is expected to be finalised by the middle of the year.

 

News attributed the planned write downs to lower than expected sales of certain new products and broadcast sales at Foxtel, resulting in a reduction in expected future cash flows.

Be a member to keep reading

Join Mumbrella Pro to access the Mumbrella archive and read our premium analysis of everything under the media and marketing umbrella.

Become a member

Get the latest media and marketing industry news (and views) direct to your inbox.

Sign up to the free Mumbrella newsletter now.

"*" indicates required fields

 

SUBSCRIBE

Sign up to our free daily update to get the latest in media and marketing.