- Telstra (TLSYY -9.5%) and News Corp. (NWS +1.2%, NWSA +1.1%) are merging their (jointly owned) Australian pay TV channel Foxtel with Fox Sports Australia.
- The result would be a dominant outlet that would be 65% controlled by News Corp. and 35% by Telstra, and which could eventually pursue an initial public offering.
- With regulatory approvals, the deal could be completed in the first half of next year.
- News Corp. says not only would the combination strengthen the company in case of an IPO, it allows it to diversify its financials amid a secular decline in print advertising.