News Corp is considering an offer for the pay television and streaming business Foxtel.
The unsolicited bid was revealed by News Corp CEO Robert Thomson when briefing analysts on June quarter and full year results.
He didn't revealed the company or fund behind the interest.
"We had no imminent intent to sell Foxtel," he said during the call.
However, News Corp was taking it seriously.
Analysts say Foxtel could be worth up to $2 billion, depending on the buyer's interests.
News Corp holds 65% of Foxtel and telco Telstra 35%.
"We are fervent Foxtel fans," said Thomson.
He said the external interest should be seen as a vote of confidence in Foxtel.
The global media group is continuing to review its portfolio with a focus on maximising returns for shareholders.
"That review has coincided recently with third-party interest in a potential transaction involving the Foxtel Group, which has been positively transformed in recent years," Thomson said.
"We are evaluating options for the business with our advisors in light of that external interest."
Foxtel revenue grew 1% to $US506 million in the June quarter, driven by Kayo and BINGE with increases in both volume and pricing.
This was offset by the impact from fewer residential broadcast subscribers and a $7 million, or 1%, negative impact from foreign currency fluctuations.
Foxtel Group streaming subscription revenue represented 32% of total circulation and subscription revenues, compared to 29% in the same quarter last year.
As of June 30, Foxtel’s total paid subscribers hit nearly 4.7 million, a 1% increase, driven by growth in Kayo and BINGE subscribers, partly offset by fewer residential broadcast subscribers.
Broadcast subscriber churn in the quarter was 11.7% compared to 11.1% in the prior year. Broadcast ARPU for the quarter increased 6% to A$90.
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