Report: News Corp, Telstra could sell Foxtel unless it sees turnaround
Media speculation over the next 18 month window for Subscription TV giant.
There has been speculation today that News Corp and Telstra might consider selling Foxtel if it is unable to deliver new growth.
The Australian Financial Review quotes Goldman Sachs analyst Kane Hannan, who met with a number of media players, including News Corp.
“[News Corp] believes it has 12-18 months to turn Foxtel around, but that revenue growth and traction from its over-the-top (OTT) platform will be required before considering the previously flagged Foxtel IPO,” Hannan relayed to clients.
“However, if it fails to gain sufficient traction, [News Corp] stressed that it did not want another [News and Information Services] division, and that it has previously shown a willingness to make the tough decisions – i.e. selling Amplify.”
Sources said Foxtel was no by means an unprofitable business, and Hannan said News Corp was confident it could invest to transform Foxtel and stabilise earnings.
News Corp owns 65% of the combined business and Telstra holds 35%.
News Corp declined to comment.