Is Foxtel set to be merged into Seven West Media, a move that could cut costs, allow the News Corp-controlled business to generate cash while delivering for Seven a much stronger business.
A story in the News Corp-owned publication The Australian claims a merger with Foxtel could be on the cards.
However, one option being discussed is a move where Foxtel is reversed into the Kerry Stokes-backed Seven West Media.
The Australian claims a back door listing could be one way that News Corp could see Foxtel make its way to the public market.
Analysts in the past have claimed a tie-up between Seven West and Foxtel would be a logical move that would also create problems for the Nine Network and their Stan streaming business.
The issue at the moment is the market, with Seven West chief executive James Warburton claiming the downturn in the television advertising market is basically a temporary issue and that the market will bounce back.
Previously, Foxtel, which is 65 per cent by News Corp, publisher of The Australian, with Telstra holding the rest of the shares, had looked at a public float of the business, but there was little interest from investors.
The Australian claim that market experts believe consolidation in the streaming industry is logical because of the number of players operating.
It is understood that Nine Entertainment and Foxtel held talks in the past six months about Nine buying Foxtel, but that the talks never progressed between the pair, which are historically fierce competitors.
Nine chief executive Mike Sneesby has been exploring content deals and broader strategic options for its streaming service, Stan.
Foxtel, which is valued between $3bn and $4bn, has become a sports coverage powerhouse that has seen a significant lift in subscribers and viewers this year.
For the six months to December, Seven West Media posted a 4.6 per cent fall in its net profit to $114.9m, as revenue slid slightly by 0.5 per cent to $814.5m.
