The great 2016 Foxtel listing that never was could ramp up again in coming weeks, should the pay television business deliver a decent first half of the financial year.
Sources said February reporting season will be watched closely and Foxtel's numbers, reported with News Corp's results, will be carefully analysed.
Should they come in with a good result, the timing may be perfect to get preparations for the deal running again.
As it stands, it is understood the big meetings that were a regular occurrence early last year have all but died down. The bankers - Goldman Sachs and Citi in News Corp's tent and the all Swiss pairing of Credit Suisse and UBS on Telstra's side - are said to remain engaged, albeit rather inactively.
Remember as per last year's discussions, Telstra was keen to bring Fox Sports, which is wholly-owned by News Corp, in with the Telstra and News-owned Foxtel through a merger, and the telco would sell down its stake.
An integrated Fox Sports and Foxtel was expected to make the investment more attractive for new shareholders because of the value of live sports in Australia. [Fox Sports has secured long-term agreements for rugby union, National Rugby League, Australian Football League and A-League.]
It is understood in a Foxtel public listing, Telstra would sell down, taking its stake to 19 per cent, News Corp would hold a controlling 51 per cent and 30 per cent would be free float.
That would mean about a $1.5 billion to $2 billion raising, depending on a number of factors including the new entity's debt load.
The float was ultimately delayed as the process of untangling Foxtel from Telstra and News Corp became too messy to complete quickly and equity markets took a turn for the worse.
But, the deal is by no means off the cards and a listing would make sense for the uneasy détente between Foxtel's major shareholders.
Foxtel needs cash to invest in new technology and fight a wave of disruption from the likes of Netflix and Stan, which is 50-50 owned by Fairfax Media and Nine Entertainment.
Telstra has its own priorities and multi-billion investments flagged for its mobile and internet networks, while News Corp is battling the decline in print media and slashing costs.
