News Corp and Telstra Sign Definitive Agreements to Combine Foxtel and FOX SPORTS Australia
March 05 2018 - 3:46PM
Business Wire
News Corp and Telstra today announced they have signed
definitive agreements to combine Foxtel and FOX SPORTS Australia,
which will deliver premium and innovative content to Australians
with ever greater quality, variety and efficiency.
The key commercial arrangements include:
- News Corp will have 65 per cent
shareholding in the combined entity and Telstra will have 35 per
cent.
- News Corp will appoint four directors
(including the Chairman) to the combined entity’s board and the
senior executives, and Telstra will appoint two directors.
- News Corp will consolidate the combined
entity into its financial statements
The combined company will provide Australian viewers with the
best possible experiences by:
- Putting greater emphasis on live
streaming products and an expanded library, including Australian
written, produced and directed programming;
- Delivering new and creative products
and packages across devices and platforms, with investment in
exclusive content and technology, including a focus on high quality
FOX SPORTS Australia productions;
- Expanding distribution channels for
Foxtel and FOX SPORTS Australia products, along with developing
greater operating efficiencies across the combined businesses;
and
- Levering the benefits of the assets and
experience of News Corp in Australia and around the world.
News Corp Chief Executive Robert Thomson said: “The launch of
the combined company will mark the dawn of a new era for our
Australian business, and Foxtel and FOX SPORTS Australia will
together be a formidable force. We will be able to use our powerful
media platforms to promote the unique sports and entertainment
assets in the two companies, and improve services for consumers and
advertisers. Patrick Delany and his talented team will be
absolutely focused on serving viewers compelling, contemporary
Australian content and superlative sports coverage on personalized
platforms.” Mr Delany will be Chief Executive Officer of the
combined company.
Telstra CEO Andy Penn said the combination of Foxtel and FOX
SPORTS Australia with their content assets would position the
company to strongly compete in the dynamic media market, and it
would continue to be an important part of Telstra's media
strategy.
“Our customers are streaming more and more sport and
entertainment on their TV at home and on their mobile devices while
on the move. Telstra will be the exclusive telco sales agent for
the combined entity on mobile and IP products and we will continue
with our broadcast reseller arrangements,” Mr Penn said.
News Corp Australasia Executive Chairman Michael Miller said:
"Under the leadership of Patrick Delany, this company will provide
the exclusive and quality content that Australian consumers demand
and expect. It will broadcast and stream in the most exciting,
innovative and engaging ways across all platforms.”
The transaction is expected to close during the fourth quarter
of Fiscal Year 2018.
Forward- Looking Statements
This document contains forward-looking statements based on
current expectations or beliefs, as well as a number of assumptions
about future events, and these statements are subject to factors
and uncertainties that could cause actual results to differ
materially from those described in the forward-looking statements.
The words “expect,” “estimate,” “anticipate,” “predict,” “believe”
and similar expressions and variations thereof are intended to
identify forward-looking statements. These statements appear in a
number of places in this document and include statements with
respect to, among other things, the expected terms of the
transaction, the expected closing date of the transaction, the
potential benefits of the proposed transaction and the expected
accounting treatment. Readers are cautioned that any
forward-looking statements are not guarantees of future performance
and involve risks and uncertainties. The following factors, among
others, could cause actual results to differ materially from those
described in these forward-looking statements: the negotiation and
execution of mutually acceptable definitive documents, matters
arising in connection with the parties’ efforts to comply with and
satisfy applicable regulatory approvals and closing conditions
relating to the transaction; and other events that could adversely
impact the completion of the transaction, including industry or
economic conditions outside of the parties’ control. The
forward-looking statements in this document speak only as of this
date and the parties undertake no obligation (and expressly
disclaim any obligation) to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law.
About News Corp
News Corp (NASDAQ:NWS)(NASDAQ:NWSA)(ASX:NWS)(ASX:NWSLV) is a
global, diversified media and information services company focused
on creating and distributing authoritative and engaging content to
consumers throughout the world. The company comprises businesses
across a range of media, including: news and information services,
book publishing, digital real estate services, and cable network
programming and pay-TV distribution in Australia. Headquartered in
New York, the activities of News Corp are conducted primarily in
the United States, Australia, and the United Kingdom. More
information: http://www.newscorp.com.
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TelstraMedia:Michael Zappone, +161 438 004
959media@team.telstra.comorInvestors: Nathan Burley, +61 457
529 334investor.relations@team.telstra.comorNews CorpMedia:
Jim Kennedy, +1
212-416-4064jkennedy@newscorp.comorInvestors: Mike Florin,
+1 212-416-3363mflorin@newscorp.com
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