Fox Corp at MoffettNathanson Media, Internet and Communications Conference Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Robert Fishman - MoffettNathanson LLC - Analyst : <_ALACRA_META_ABSTRACT>So it's been a big year for Fox. And there's a lot of accomplishments. I'm curious, as you kind of think back over the past year, what are you most proud of? Help us think about like where Fox has come over the past year? And why you think things have seemingly gotten a lot more positive, at least in terms of the market perception?

Question: Robert Fishman - MoffettNathanson LLC - Analyst : Yeah. And maybe I'd even go back further, like just the decision of which assets and focus of the portfolio. So I'm just curious with the assets that you have, and we'll get into some of the details that you mentioned, there's clearly the challenges of the broader landscape, but it seems like the unique portfolio that you have kind of sets you up as we start to think about going forward for Fox's path to continue to be a little bit different.

Question: Robert Fishman - MoffettNathanson LLC - Analyst : Okay. Let's go to the big announcement that you alluded to. So we would say smartly staying on the sidelines and avoiding $1 billion of losses within the streaming wars. The decision to finally announce a Fox DTC platform called FOX One, help us understand like why is now the right time?

Question: Robert Fishman - MoffettNathanson LLC - Analyst : So if you're familiar with our research, we've labeled some of the other streamers as essentially cheaters of the ecosystem by the fact that they're double dipping, right? Essentially, offering a much lower retail price but then charging the distribution partners still a significant wholesale price. I mean you just touched on it, but can you help us kind of unpack a little bit more about why you think the pricing piece is so critical to limit that cannibalization from the next round of negotiations with the distributors?

Question: Robert Fishman - MoffettNathanson LLC - Analyst : Okay. A different way maybe of thinking of FOX One, and this goes back to our friends of Venu, is -- should we think about FOX One as a new avenue to really monetize this new -- that the news assets and portfolio of sports rights, maybe even potentially the sublicensing conversation comes in or the bundling with some of the aggregators like YouTube or Amazon or Apple even. So how do we think about that as part of the future of FOX One strategy?

Question: Robert Fishman - MoffettNathanson LLC - Analyst : Okay. So let's talk about the pay-TV ecosystem in a little bit more detail. Aside from this past quarter, I think previous five quarters, affiliate fees were actually stepping up sequentially every single quarter, which is something that we don't see from anyone else. So as we think about the next round of affiliate fees, I think the natural question is even bringing FOX One back into this for a second, how do we think about Fox' position to keep pricing growth ahead of the pay-TV declines?

Question: Robert Fishman - MoffettNathanson LLC - Analyst : Okay. Can you talk about the skinny bundles in a little bit more detail? Do you think the current pricing is the right kind of magical price point and something that we're focused on, thinking about how YouTube TV, given its prominence in the new pay-TV world, whether they should and will end up offering their own skinny bundle maybe at a more aggressive price?

Question: Robert Fishman - MoffettNathanson LLC - Analyst : Okay. So with that, I'm curious to hear your view on another strategy within pay-TV is Charter's strategy to bundle streaming services with their linear offering. Do you think that that's also going to have success in terms of mitigating the subscriber declines? Or because of its pricing, that has less of a potential impact?

Question: Robert Fishman - MoffettNathanson LLC - Analyst : Okay. Let's switch to the other big piece of your business, advertising. So again, just given the current backdrop that we've all been dealing with over the past couple of months and the added volatility in consumer sentiment, I'm curious, and it didn't come up on the earnings call, but have you observed any real noticeable shifts in advertising over the past couple of months? And maybe even go one level deeper, when we think about local, which is usually a leading indicator versus national trends?

Question: Robert Fishman - MoffettNathanson LLC - Analyst : Okay. You just hit on this a little bit, but maybe to go a little deeper. When we think about the overall ad dollar ecosystem and how the eyeballs are clearly shifting towards the digital connected TV platforms. Given Fox's unique portfolio of sports and news, do you still expect to retain a greater share of those linear dollars? Or does Tubi come in to help kind of continue to expand your piece of the pie?

Question: Robert Fishman - MoffettNathanson LLC - Analyst : Okay. So let's go to Tubi then. So clearly, it's been a pretty huge part of the growth story for Fox. And I would say, finally, getting the appropriate attention that it does deserve. Is there a way to leverage Tubi's success when thinking about back to FOX One, like as a potential on-ramp? How are you thinking about using Tubi in conjunction with FOX One?

Question: Robert Fishman - MoffettNathanson LLC - Analyst : Well, I was going to get to that next. Yes.

Question: Robert Fishman - MoffettNathanson LLC - Analyst : Okay. Another thing that came up at the upfront was how sports has helped kind of drive the overall brand. Clearly, Super Bowl being the extreme example of that. But I think you also announced that, that World Cup will be a part of Tubi's focus for the coming year. So maybe just help us think about how we -- what type of content we should even think about when we think about Tubi? Is that strategy evolving?

Question: Robert Fishman - MoffettNathanson LLC - Analyst : Okay. So taking where Tubi is today, can you help us think about how you're thinking about this vision for Tubi over the next, call it, five years, if you want to help in terms of any sort of profitability targets? But then really coming back to one of your first points you made on valuation. Is there any potential for spinning this off, if it's not continuing to get the appropriate value that you think it deserves?

Question: Robert Fishman - MoffettNathanson LLC - Analyst : Okay. Let's shift to FOX News, a pretty important asset within the portfolio. When we think about advertising affiliate fees, clearly, the viewership gains have been tremendous. How do we think about the monetization of these viewership gains? Is it going to be REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 14, 2025 / 6:20PM, FOXA.OQ - Fox Corp at MoffettNathanson Media, Internet and Communications Conference more from the advertising, which is obviously more of a direct impact from the higher engagement? Or can affiliate fees also be another significant lever given the importance that they are for the overall ecosystem?

Question: Robert Fishman - MoffettNathanson LLC - Analyst : Should we think about FOX Nation as something that will be part of FOX One? Or is that going to remain an independent service?

Question: Robert Fishman - MoffettNathanson LLC - Analyst : Okay. Let's shift to one of our favorite topics as we think about Fox, the importance of the sports portfolio. So clearly, your rights are locked up for a number of years ahead. That said, one kind of interesting data point to us was that Netflix swooped in and got the Women's World Cup. So I'm just kind of curious on your latest thoughts on how Fox is positioned to compete with these digital bidders over the next couple of years as some of these bigger rights start to come up again? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 14, 2025 / 6:20PM, FOXA.OQ - Fox Corp at MoffettNathanson Media, Internet and Communications Conference

Question: Robert Fishman - MoffettNathanson LLC - Analyst : Okay. Do you care to comment on some of those other packages that are in the market right now? So MLB top of mind right now, especially given your existing relationship with the League, Home Run Derby is something that seems like a natural fit for you. So any comments around that package?

Question: Robert Fishman - MoffettNathanson LLC - Analyst : Okay. How about -- two more for you. So UFC is also in the market. You have a long history with that fighting league. And then also, you mentioned just IndyCar, Formula 1 seems to be out there as well. So how do those two properties potentially fit within the FOX portfolio?

Question: Robert Fishman - MoffettNathanson LLC - Analyst : That's a clear answer. Let's shift over to sports betting. So we just had our friends, DraftKings here before you. Clearly, you have a pretty valuable option with FanDuel 18.6%, and you went through the value of that on the earnings call. So I'm not going to make you restate that, you're welcome to if you want. But the question really for you on sports betting and the FanDuel option is, is there a way to monetize the option aside from going through the strenuous process of getting licensed? Would you look to explore to selling it back to Flutter? Is that the best-case scenario? Or is that something that you'd rather kind of go through the process and hold that 18.6%? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 14, 2025 / 6:20PM, FOXA.OQ - Fox Corp at MoffettNathanson Media, Internet and Communications Conference

Question: Robert Fishman - MoffettNathanson LLC - Analyst : Okay. When we think about Fox, clearly, the balance sheet, we can't ignore how strong it is and how that's an asset for the company. When thinking about the free cash flow generation of these businesses over the next couple of years, how best should investors think about this cash? Because I think there's, again, putting FanDuel aside, there's the question on how to best use the cash, whether to be more aggressive on capital returns, whether M&A comes into that. So help us think about the latest thoughts given the strength even just last quarter, seeing the free cash flow.

Question: Robert Fishman - MoffettNathanson LLC - Analyst : Okay. When thinking about free cash flow, I'm curious to come back to sports for 1 second, the total content spend for the entire company is clearly a lot locked in based on the sports commitments. So how do you think about the overall level of content spending as it relates to sports, which, again, is pretty well known. But the flex that you can make on the nonscripted content spending stuff. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 14, 2025 / 6:20PM, FOXA.OQ - Fox Corp at MoffettNathanson Media, Internet and Communications Conference

Question: Robert Fishman - MoffettNathanson LLC - Analyst : On the entertainment, sorry, yes.

Question: Robert Fishman - MoffettNathanson LLC - Analyst : Okay. So just wrapping up here, hopefully, when you're back with us next year, and we sit down in retrospect, thinking about the last 12 months, what do you think investors will be most surprised by? I'm guessing, I know your answer as it relates to Tubi, but is there anything else that you think that the market is not fully appreciating given Fox's overall portfolio?

Question: Robert Fishman - MoffettNathanson LLC - Analyst : We'll book it now. Thank you, John. I appreciate you being here.