Foxtel, FOX Sports plan company merger.
News Corp & Telstra to bring 2 media companies into a single business.
- Published by David Knox
- on
- Filed under Subscription, Top Stories
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
One Response
David, 2nd par should read “while Telstra and News Corp currently share ownership of Foxtel.”
Telstra is keen to sell it’s 50% share of Foxtel to avoid another Sensis disaster and use the money to bolster it’s dividends and boost it’s flagging share price.