News Corp. considers sale of Foxtel amid rising Interest from buyers

News Corp. is considering selling the Australian pay TV and streaming operator Foxtel, according to the Murdoch family-controlled company’s full-year earnings report released on Thursday. Robert Thomson, the chief executive of News Corp., revealed that the company has received interest from potential buyers for Foxtel while conducting a review of its assets.

“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,” Thomson stated.

“We are evaluating options for the business with our advisors in light of that external interest,” he added.

Foxtel Group, which operates traditional cable and satellite TV services in Australia, also runs the sports streaming service Kayo, the entertainment streaming platform Binge, and the more recently launched OTT streaming aggregator Hubbl. Analysts have recently speculated that these streaming services are facing challenges in competing with dominant platforms like Netflix, particularly amid a reduction in household spending in Australia. Additionally, the streaming platforms operate at significantly lower margins compared to Foxtel's cable and satellite businesses, which have seen a consistent decline in users.

Foxtel is majority-owned by News Corp. with a 65 percent stake, while the remaining 35 percent is held by the Australian telecom company Telstra, which has yet to publicly comment on the potential sale.

In its fourth-quarter earnings report on Thursday, News Corp. announced a 6 percent increase in revenue, reaching $2.58 billion, surpassing both revenue and profit expectations for the period. The company credited the strong performance to its Dow Jones unit and solid results in its real estate listings and book publishing businesses. However, revenue from its news media division, which includes Foxtel’s parent company News Corp Australia, News U.K., and the New York Post, decreased by 5 percent due to a drop in advertising and subscription revenues.

In June, News Corp. initiated a major restructuring effort, which included reducing its workforce to streamline management and aiming for $65 million in cost reductions.

“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 in the earnings statement on Thursday.