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

March 6, 2018 10:44

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

Paul Wallbank

Paul Wallbank was news editor at Mumbrella between June 2017 and June 2019. Previously he's covered business and technology issues for outlets ranging from The Australian and Sydney Morning Herald to the ABC and Business Spectator.

Topics

6 COMMENTS

Australian Taxpayer 6 Mar 18

Will Foxtel be paying any tax at all this year after the right downs?

https://www.michaelwest.com.au/tax-dodgers/foxtel-cable-television-pty-limited/

User ID not verified.

MOONEE PONDS 6 Mar 18

What a joke we are
Network 10 share investment loss $$$ well its a few million to add to the real red ink.
Foxtel puck – don’t mention how no one wants it not even Netflix because of Foxtel being stuck in the past not allowing Netflix to include it’s “Button” on our puck remote.
Our best Staff walking away from Foxtel weekly. Were still doing the same tricks bringing back a color version of TCM…but you have to get the movies package where as TCM was included within the basic package. Over 200 staff have left in just 6 months, whilst South Africa call center grows, we have the ‘CEO Agent of change’ in charge doing his fly by night tours of Foxtel offices doing head counts. As our fomer CEO Richard Freudenstein said 4 years ago if you dont look after your staff and your family of customers they will walk away from you

User ID not verified.

MOONEE PONDS 9 Mar 18

Well the front of house sackings have already started

77 staff sacked today from Moonee ponds and Robina from a variety of roles.

The same old lines “we have to get match fit”

So much for the Agent of Change CEO Patrick the axe man !

User ID not verified.

Vivienne Kelly 13 Mar 18

Hi MOONEE PONDS,

Thanks for flagging this. We followed up and reported the outcome here:
https://mumbrella.com.au/foxtel-make-layoffs-call-centres-compete-global-counterparts-503863

Vivienne – Mumbrella

MOONEE PONDS 9 Mar 18