Foxtel and Fox Sports to merge

NEWS Corp and Telstra have signed definitive agreements to combine Foxtel and Fox Sports.

The move effectively clears the final hurdle to the combination of Australia’s biggest pay-TV broadcaster with the country’s leading sports programmer. After months of talks, shareholders on both sides reached an agreement ahead of schedule, paving the way for the formation of a sports and entertainment player with combined annual revenues of more than $3 billion.

Key terms include News Corp, publisher of the Cairns Post, holding a 65 per cent shareholding in the combined entity, with Telstra owning the remaining 35 per cent.

Telstra and News Corp are currently joint shareholders in Foxtel, while Fox Sports is wholly owned by News.

News Corp, which will consolidate the combined entity into its financial statements, will appoint four directors including the chairman to the company’s board and the senior executives, and Telstra will appoint two directors.

Former Fox Sports chief Patrick Delany was installed as the combined company’s new chief executive.

“The launch of the combined company will mark the dawn of a new era for our Australian business, and Foxtel and Fox Sports Australia will together be a formidable force,” said News Corp chief Robert Thomson.