DAZN secures control of News Corp's Foxtel as $2.1 billion deal goes through
1. News Corp sold Foxtel to DAZN for A$3.4 billion. 2. The sale may bolster NWS's focus on core media businesses.
FAQ
Why Bullish?
The divestiture of Foxtel allows for more capital allocation toward core operations, potentially enhancing News Corp's profitability. Historical sales of non-core assets have often preceded stock price gains due to improved focus and reallocation of resources.
How important is it?
The sale represents a significant strategic move for News Corp, indicating a shift to more profitable media segments. Its impact on stock price is likely to be substantial given the size of the transaction and its strategic implications.
Why Long Term?
Focusing on core businesses can lead to sustained growth over time. Similar past divestitures, like Disney's sale of its stake in BAMTech, resulted in improved operational efficiencies and stock price appreciation in subsequent years.