Fox (FOX) risk factors, FY2025 10-K

Risks Related to Macroeconomic Conditions, Our Business and Our Industry

1. 01Changes in consumer behavior and evolving technologies and distribution platforms and offerings continue to challenge existing business models and may adversely affect the Company's business, financial condition or results of operations
2. 02FOX’s advertising revenues have been, and may continue to be, adversely affected by factors such as changes in consumer behavior, advertising market conditions and deficiencies in audience measurement, and they vary substantially due to cyclical sports events and elections
3. 03Because the Company derives a significant portion of its revenues from a limited number of distributors, the failure to enter into or renew affiliation and carriage agreements on favorable terms, or at all, could have a material adverse effect on the Company’s business, financial condition or results of operations
4. 04If the number of subscribers to MVPD services continues to decline or such declines accelerate, the Company’s affiliate fee and advertising revenues could be negatively affected
5. 05The Company is exposed to risks associated with weak economic conditions and increased volatility and disruption in the financial markets
6. 06The Company operates in a rapidly evolving and highly competitive industry
7. 07Acceptance of the Company's content by the public is difficult to predict, which could lead to fluctuations in or adverse impacts on revenues
8. 08Our business depends on the popularity of special sports events and the continued popularity of the sports leagues and teams for which we have programming rights
9. 09The inability to renew programming rights, particularly sports programming rights, on sufficiently favorable terms, or at all, could cause the Company’s advertising and affiliate fee revenues to decline significantly in any given period or in specific markets
10. 10Damage to our brands, particularly the FOX brand, or our reputation could have a material adverse effect on our business, financial condition or results of operations
11. 11Acquisitions, investments and other strategic initiatives present many risks, and we may not realize the financial and strategic goals we had contemplated, which could adversely affect our business, financial condition or results of operations
12. 12The loss of key personnel, including talent, could disrupt the management or operations of the Company’s business and adversely affect its revenues
13. 13Labor disputes may disrupt our operations and adversely affect the Company’s business, financial condition or results of operations
14. 14The Company has recognized, and could continue to recognize, asset impairment charges for goodwill, intangible assets, programming and other assets and investments

Risks Relating to Cybersecurity, Piracy, Privacy and Data Protection

1. 15The degradation, failure or misuse of the Company’s network and information systems and other technology could cause a disruption of services or improper disclosure of personal data or other confidential information, resulting in increased costs, liabilities or loss of revenue
2. 16Technological developments may increase the threat of content piracy and signal theft and limit the Company’s ability to protect its intellectual property rights
3. 17The Company is subject to complex laws, regulations, rules, industry standards and contractual obligations related to privacy and personal data protection, which are evolving, inconsistent and potentially costly

Risks Relating to Legal and Regulatory Matters

1. 18Changes in laws and regulations, or the interpretation or enforcement thereof, may have an adverse effect on the Company’s business, financial condition or results of operations
2. 19The Communications Act and FCC regulations limit the ability of non-U.S. citizens and certain other persons to invest in us
3. 20The failure or destruction of satellites or transmitter facilities the Company depends on to distribute its programming could materially adversely affect its businesses and results of operations, as could changes in FCC regulations governing the availability and use of satellite transmission spectrum
4. 21The Company could be subject to significant tax liabilities
5. 22Unfavorable litigation or governmental investigation results could require us to pay significant amounts or lead to onerous operating procedures
6. 23matters. The Company has incurred significant expenses defending against the defamation and disparagement matters described in Note 14, including the payment of approximately $800 million to settle the Dominion matter and a related lawsuit in April 2023
7. 24Risks Relating to Our Ownership Structure Certain of the Company’s directors and significant stockholders may have actual or potential conflicts of interest because of their equity ownership in News Corp or because they also serve as directors of News Corp
8. 25These provisions could discourage potential acquisition proposals and could delay or prevent a change in control of the Company, even in the case where a majority of the stockholders may consider such proposals desirable

Risks Related to the Company’s Separation from 21CF

1. 26indemnification from 21CF may not be sufficient to insure the Company against the full amount of liabilities that have been allocated to 21CF
2. 27The Company could be liable for income taxes owed by 21CF