Foxtel & Fox SPORTS Australia To Combine

Xavier Trudeau
Août 17, 2017

Foxtel and Fox Sports are to be merged into a single company that could be listed on the share market, owners News Corp and Telstra have announced.

If the transaction between Telstra and News Corp is concluded on the proposed terms, News Corp expects to consolidate the new company into its financial statements.

"The proposed restructuring of Foxtel and Fox Sports will unlock value for News Corp shareholders and provide a clearer vision into the depth and strength of our Australian assets", said News Corp CEO Robert Thomson.

The merger will result in News Corp owning a 65% stake in the new company, with Telstra owning 35%.

He added: "There is no doubt that the world of content is becoming more complicated and competitive, and it is important that Australia has a strong local platform for its great sports and for homegrown creativity, as well as a showcase for global programs". News Corp will also appoint the Chairman, majority of the board and senior executives and Telstra will appoint the remaining directors.

News Corp is the parent company of The Wall Street Journal and Dow Jones Newswires.

The new company will aim to deliver premium sports as well as original Australian and global entertainment.

The two 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. This includes delivering a range of innovative products and packages available across different devices and platforms.

Telstra CEO Andy Penn commented: "Our strategically significant investment in the new company will be an important part of Telstra's media strategy". "With a strong premium content proposition and scale subscriber base, the new company will be well positioned to deliver a compelling customer experience".

The new company will also expand distribution channels for the sale of Foxtel and Fox Sports products, meant to deliver improved operating efficiencies across the combined businesses.

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