Foxtel is basically a special entity for News Corp. News Corp has loaned money to it and can cross promote other services through it. The problem is Penn hasn't had the courage to get rid of it sooner and it will likely just blow up in his face with future impairments.
I hold News Corp and still believe it's undervalued but the only strategy I can see is if Telstra/Newscorp sell Kayo/Binge to a new entity and liquidate Foxtel. The longer they take to do this, the more pain there will be.
Telstra shareholders should be sending letters en masse to management if they actually want action on this. There will be a lot of marketing costs and other areas saved by closing the poorly run entity.
TLS Price at posting:
$3.37 Sentiment: None Disclosure: Not Held
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