‘We would be supportive of that’: Telstra boss endorses Foxtel sale
Telstra has publicly supported the proposed sale of Foxtel Group, after News Corp reportedly fielded a takeover offer from US-based firm Platinum Equity last week.
Telstra chairman Craig Dunn spoke about the proposed sale during the company’s annual general meeting (AGM) on Tuesday, saying: “We think that would be a sensible move or decision to make on behalf of shareholders.”
Telstra owns a 35% stake in Foxtel Group, which is comprised of the traditional pay TV service, plus sports streaming service Kayo Sports, streaming service Binge, and the recently-launched Hubbl.
Dunn added: “From time to time the importance of certain assets and their contribution to the value proposition we make to our customers does change.”
Tesltra CEO Vicki Brady said likewise during an investment call with reporters, although she stressed any sale was in its early stages.
“From our point of view, 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,” she said.
Brady also noted the strong growth of Foxtel under boss Patrick Delany.
“What’s been really pleasing to see how Patrick and the team have really transformed the business over the last few years,” she said, pointing to the fast growth of the company’s streaming subscribers.
“Kayo and the streaming business that now exists there, is such a stark difference to where it was many years ago,” Brady noted.
News Corp first flagged a potential sale of Foxtel in August, when it noted in its quarterly financial statement that there is “third-party interest in a potential transaction involving the Foxtel Group”.
“We are confident in the company’s long-term prospects and are continuing to review our portfolio with a focus on maximising returns for shareholders,” News Corp CEO Robert Thomson said.
“That review has coincided recently with third-party interest in a potential transaction involving the Foxtel Group, which has been positively transformed in recent years.
“We are evaluating options for the business with our advisors in light of that external interest.”
After Thomson’s statements, Julian Ogrin, the chief of Foxtel’s streaming and advertising division, told Mumbrella the decision to sell is “one for the shareholders.”
“All that is really for them to decide,” he said.
“As Robert said, they 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.”
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