Media

Mar 6, 2018

Merger plans reveal News Corp’s over-valued stake in Foxtel

News Corp has had to write-down more than US$1 billion as its Foxtel deal with Telstra uncovers an overvaluation of assets.

Glenn Dyer — <em>Crikey</em> business and media commentator

Glenn Dyer

Crikey business and media commentator

Worsening conditions in the Australian TV and media markets have played a major part in News Corp's US$1.1 billion impairments losses revealed by its deal with Telstra, merging Foxtel and Fox Sports . The two companies announced this morning that they had entered into definitive agreements regarding the merger, with News taking a 65% stake and Telstra taking 35%. Previously the two companies controlled Foxtel with 50% each and News owned Fox Sports totally.

Telstra also made an announcement today that, instead of sharing in News' red ink, it would be booking a one off accounting-gain currently estimated at AU$263 million. That tells us that the two companies had widely differing accounting valuations of the Foxtel stake, likely that News' was wildly over the mark.

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3 comments

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3 thoughts on “Merger plans reveal News Corp’s over-valued stake in Foxtel

  1. klewso

    How is this accounting going to effect their tax?

    1. Bill Hilliger

      They don’t pay tax. Expect a big injection of corporate welfare from LNP in the hope that come next election the Murdoch NewsCrap organisation will once again go all out to get the LNP re-elected. Hard working Australian voting sheeples will oblige providing there is a nifty slogan. Beel Shortin bad, da Labor Party bad, unions bad, union thugs bad, da Labor Party fault. Jobson Growth, Jobson Growth, more pay, LNP protects Strayans from da bad terrorists, get the picture? Meanwhile rumour has is post the 30th negative LNP poll, Peter Dutton believes he will be the man to fix the LNP poll malaise. Malfeasance Turnbull will join the rAbbott and Barnyard on the back benches.

      1. klewso

        Maybe we should be paying them – another “$30,000,000 no paper-work attached” to provide some airy fairy service that we’d have to subscribe to Fuxtel to see?

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