Australian media company Telstra and U.S.-based News Corp confirmed they would combine Foxtel and Fox Sports Australia, two months after Australia’s competition watchdog dropped its opposition to the merger.
News Corp currently owns 100 percent of Fox Sports. It is also the joint owner of Foxtel with Telstra in a 50/50 joint venture.
Telstra said it expects to record a one-off accounting gain, estimated at A$263 million ($204 million), as a result of the deal.
Under the terms of the deal, News Corp will hold 65 percent in the combined venture and Telstra 35 percent. The transaction is expected to close during the fourth quarter of this year.