The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Robert S. Fishman - MoffettNathanson LLC - Analyst
: So let's start with the proposal to bring News Corp and FOX together. Initially, it was announced back in October, and then ended up getting
withdrawn in January. Anything that you can share further about what went into that initial decision? And then the reasons for ending up,
withdrawing it a few months later?
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 17, 2023 / 3:00PM, FOXA.OQ - Fox Corp at MoffettNathanson Technology, Media, and Telecom Conference
Question: Robert S. Fishman - MoffettNathanson LLC - Analyst
: As you know, we've been stead faster in our support of FOX on valuation and not even alone, but valuation so supportive. Can you just talk a bit
about, has your view changed about the future of your strategy, sports and news, given the shifting pay-TV landscape, right? So is there any change
in your strategy set up a couple of years ago on what you've seen happen?
Question: Robert S. Fishman - MoffettNathanson LLC - Analyst
: Okay. Great. So let's switch over to the biggest driver.
Question: Robert S. Fishman - MoffettNathanson LLC - Analyst
: Okay. So it's a great setup for the next set of questions coming. So let's dive in on the biggest driver of the company's cash flows, which is FOX
News, clearly gotten a lot of attention, again, over the past couple of months. After the Dominion settlement, will FOX News leadership do anything
differently to not place shareholders in future jeopardy of more litigation?
Question: Robert S. Fishman - MoffettNathanson LLC - Analyst
: Well, yes.
Question: Robert S. Fishman - MoffettNathanson LLC - Analyst
: So you touched on this a little bit earlier, but can you talk a little bit more about FOX News's negotiating power to seek higher affiliate fees from
distributors despite the recent developments?
Question: Robert S. Fishman - MoffettNathanson LLC - Analyst
: So you mentioned...
Question: Robert S. Fishman - MoffettNathanson LLC - Analyst
: So Michael alluded to how featured Tubi was as part of the upfront presentation. Can you maybe expand upon how it's different this year versus
last year? How much is it being incorporated as part of the upfront?
Question: Robert S. Fishman - MoffettNathanson LLC - Analyst
: It's a great setup for our next topic. I'm talking about reach. So let's shift to FOX Sports. Can you discuss how FOX's strategy to keep all of its premium
content, including -- and especially the NFL, exclusive to the pay-TV impacts your relationships and the negotiations with the distributors and your
affiliates that you talked about earlier?
Question: Robert S. Fishman - MoffettNathanson LLC - Analyst
: Is that true also from a net retrans basis to the stations that are FOX affiliates, when they go into their own negotiations, do you think they're getting
treated differently than the ones who maybe representing networks that have lead content over the top as well?
Question: Robert S. Fishman - MoffettNathanson LLC - Analyst
: So maybe just to follow up on that. And again, you alluded to it a little bit earlier, but anything more you can talk about that pricing increase that
you are getting maybe ahead of your expectations that you mentioned to offset what we all know that the higher levels of cord cutting?
Question: Robert S. Fishman - MoffettNathanson LLC - Analyst
: So maybe just a follow-up to hit it home a little bit further, are you willing to work with other sports networks to make that central hub for sports,
to find that place online, to find all the different rights in one place?
Question: Robert S. Fishman - MoffettNathanson LLC - Analyst
: As sportsman find it probably frustrating to go from the app to app to app.
Question: Robert S. Fishman - MoffettNathanson LLC - Analyst
: So you do have some sports rights that are coming due over the next couple of years, WWE, World Cup, Pac-12 and NASCAR, to name a few. How
do you measure as you just mentioned with NBA, like when do you have too much sports? Or how do you evaluate those decisions as they're
coming up?
Question: Robert S. Fishman - MoffettNathanson LLC - Analyst
: Let's shift over to sports betting for a second. Now the FanDuel arbitration is finally behind us, we actually had FanDuel butter here yesterday. Can
you speak to the overall relationship with Flutter and including how you feel about their upcoming U.S. listing?
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 17, 2023 / 3:00PM, FOXA.OQ - Fox Corp at MoffettNathanson Technology, Media, and Telecom Conference
Question: Robert S. Fishman - MoffettNathanson LLC - Analyst
: Anything you want to add in terms of FOX Bet and in the future?
Question: Robert S. Fishman - MoffettNathanson LLC - Analyst
: So you hit on the TV stations. I'm wondering, can you further expand on the strategic value of owning the broadcast network combined with that
overlooked TV station portfolio that you have?
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 17, 2023 / 3:00PM, FOXA.OQ - Fox Corp at MoffettNathanson Technology, Media, and Telecom Conference
Question: Robert S. Fishman - MoffettNathanson LLC - Analyst
: All right. Good. So maybe just kind of bringing it all together, wrapping it up. How can you give investors confidence that FOX's EBITDA and free
cash flow, something that we focus on a lot, can continue to grow or at least remain stable despite the secular pressures facing the broader
ecosystem today?
Question: Robert S. Fishman - MoffettNathanson LLC - Analyst
: Awesome. With that, Lachlan, thank you for being here. Steve, Dan, Gabby, thank you.
| 
