On Thursday, News Corp and Telstra announced a plan to combine Fox SPORTS Australia and Foxtel into a new company. The company will be strategically positioned to deliver premium sports content, as well as original international entertainment to the Australian market. The agreement is subject to the conclusion of definitive agreement and regulatory review. As a part of the agreement, New Corp will assume 65% of the shareholding of the new company. Telstra will take over the remaining 35%.
News Corp will be responsible for appointing a Chairman, as well as the majority of the board and senior executives. The company will attempt to meet the needs of modern Australian viewers while delivering greater choice by investing in content written, produced and directed in Australia. The company will also deliver a wide array of innovative products and packages across numerous devices and platforms.
The company will attempt to expand distribution channels for the sale of Foxtel and Fox Sports products. The agreements will give the company a better position for an initial public offering in the future. New Corps intends to consolidate the new company into its financial states when the transaction is concluded on the purposed terms.
The two companies expect to finalize the transaction sometime in the first half of 2018.