Foxtel and FOX Sports are to be merged into a single company, News Corp and Telstra have announced.
FOX Sports is completely owned by News Corp, while Telstra and Foxtel currently share ownership of Foxtel.
Under the merger plans, which could be completed in the first half of 2018, News Corp will have a 65 per cent stake in the new company, and Telstra 35 per cent. But the deal would need regulatory approval.
Both owners said the merger will align ownership and management of the pay-TV businesses, to allow it to meet the needs of Australian viewers and invest in local content and technology.
News Corp chief executive Robert Thomson said, “The new structure will simplify management control and ensure that the company is best placed to leverage the skills of its talented Australian employees and program maker.”
The proposed arrangements will better position the new company for a public offering in the future, News Corp and Telstra said.
Foxtel’s CEO is Peter Tonagh (pictured) whilst FOX Sports CEO is former Foxtel exec Patrick Delany.
Source: SKY News