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News Corp this week released its full-year earnings, which represented a six per cent increase of $3.9 billion ($2.58 billion USD).
News Corp is the majority shareholder in Foxtel with 65 per cent. The other 35 per cent is held by telecommunications network Telstra.
News Corp has reportedly received interest from third parties to acquire the Foxtel business – however, Telstra said that was not indicative of an impending sale.
The news is important for Supercars given it is coming to the end of its five-year broadcast deal.
Supercars signed a $200 million agreement between Foxtel and free-to-air partner Seven in 2020. The agreement runs from 2021 to 2025.
Foxtel owns Fox Sports and streaming services Kayo, Binge, and Hubbl.
News Corp global chief executive Robert Thomson revealed the news this week.
“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,” 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.”
A Telstra statement acknowledged News Corp was “assessing strategic and financial options for the Foxtel Group” and “Consistent with the statements made by News Corp, 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.”
Foxtel did not offer a statement but said the matter was for its shareholders to decide.
