Despite many false starts, Foxtel seem to be closer to a sale to British streaming platform, DAZN.
👉 Background: Back in its heyday, Foxtel was the go-to Pay-TV service. Think: Fox 8, Comedy Channel and Cartoon Network. But since YouTube, Netflix and TikTok entered the world, Foxtel’s subscriber numbers have been rapidly declining.
👉 What happened: Now, the joint-owners of Foxtel - News Corp and Telstra, want to sell Foxtel. And despite many false starts, they seem to be closer to a sale to British streaming platform, DAZN.
👉 What else: DAZN already broadcasts NFL, MMA and UEFA Women’s Champion League in Australia. And, given previous acquisition talks fell over because of price, it seems like News Corp may be willing to compromise a little bit more now.
💡When evaluating whether to sell a declining company, owners face a classic dilemma: cling to past valuations or accept a deal that reflects today’s reality.
💡Foxtel’s previous dominance in Pay-TV created a high standard for its valuation. But its Pay-TV subscriber numbers have dropped from over 2 million subscribers in 2021 to 1.2 million subscribers.
💡 So clinging to that previous success can lead to overestimating its worth in today’s market. And this isn't the first time Foxtel's owners have overvalued its business.
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