Foxtel could be up for sale after third party interest in the News Corp owned television company

Publishing giant News Corp has revealed it is considering selling Australian pay television company Foxtel following a financial update.

Publishing giant News Corp is considering selling Foxtel following “third party interest” in the Australian pay television company.

In an update on the companies financial results for the 2024 fiscal year, News Corp chief executive Robert Thomson said the company is continuing to review its portfolio with a focus on maximising returns for shareholders.

News Corp chief executive Robert Thomson provided a financial update on Friday. Photo: Jim Watson / AFP

“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,” he said on Friday.

“We are evaluating options for the business with our advisers in light of that external interest.

Exactly who the interested party is remains unclear.”

Mr Thomson reportedly said News Corp had no “imminent intent” to sell Foxtel but are reviewing potential strategic and finical options for the business.

The report revealed Foxtel Group experienced “strong streaming performance”, ending the fiscal year with more than 3.2m total paying streaming subscribers.

Mr Thomson said revenue in the fourth quarter grew on both a “reported and constant currency basis” as streaming strength offset broadcast declines.

“Audiences are continuing to transition from traditional broadcast to over-the-top consumption,” he said.

News Corp own 65 per cent of Foxtel, which owns a pay TV business, streaming services Binge and Kayo Sports, while Telstra owns 35 per cent.

Total streaming subscribers, including Kayo, Binge and Foxtel Now have reached 3.305 million, with streaming services representing nearly 70 per cent of Foxtel Group’s total subscriber base.

Kayo reached 1.606 million subscribers while Binge now has 1.554 million subscribers.

The report also revealed News Corps fourth quarter revenue reached $2.58bn, which is a six per cent increase compared to $2.43bn the prior year.

The company said the increased revenue was driven by growth within the Digital Real Estate Services, Book Publishing and Dow Jones segments.

A Telstra spokesperson said: “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.”

Originally published as Foxtel could be up for sale after third party interest in the News Corp owned television company