Company: FOX
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001628280-25-024466
Chunk: 14

Company: Fox Corp
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 1
Chunk 14
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 Unaudited Consolidated Financial Statements are referred to as the “Financial Statements” herein. The Unaudited Consolidated Statements of Operations are referred to as the “Statements of Operations” herein. The Consolidated Balance Sheets are referred to as the “Balance Sheets” herein.

NOTE 2. ACQUISITIONS, DISPOSALS AND OTHER TRANSACTIONS

The Company’s acquisitions support the Company’s strategy to strengthen its core brands, grow its digital businesses and selectively enhance production capabilities for its digital and linear platforms. In February 2025, the Company acquired a controlling ownership interest in a digital media company. The accounting for the business combination is based on provisional amounts and the allocation of the consideration transferred is not final and is subject to changes pending the completion of the final valuation of certain assets and liabilities. During the nine months ended March 31, 2024, the Company made no acquisitions.In February 2024, FOX announced that it would enter into a joint venture with ESPN, a subsidiary of The Walt Disney Company (“Disney”), and Warner Bros. Discovery Inc. (“WBD”) to form a digital distribution platform 

6

FOX CORPORATIONNOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

focused on sports called Venu Sports. On January 10, 2025, FOX, Disney and WBD announced the decision to discontinue Venu Sports (See Note 8—Commitments and Contingencies under the heading "Venu Sports”). In connection with that decision, FOX recorded restructuring charges and wrote off the previously capitalized costs during the three and nine months ended March 31, 2025, respectively, in Restructuring, impairment and other corporate matters in the Statements of Operations.

NOTE 3. INVENTORIES, NET

The Company’s inventories were comprised of the following:As ofMarch 31,2025As ofJune 30,2024(in millions) Licensed programming, including prepaid sports rights$720 $841 Owned programming537 497 Total inventories, net1,257 1,338 Less: current portion of inventories, net(455)(626)Total non-current inventories, net$802 $712 Owned programmingReleased$321 $238 In-process or other216 259 Total$537 $497 The following table presents the aggregate amortization expense related to Inventories, net included in Operating expenses in the Statements of Operations:For the three months ended March 31, For the nine months ended March