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.
Fox Sports is completely owned by Rupert Murdoch's News Corp, while Telstra and Foxtel currently share ownership of Foxtel.
Under the merger plans, which could be completed in the first half of 2018, News Corp will have a 65 per cent stake in the new company, and Telstra 35 per cent.
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.
News Corp chief executive Robert Thomson said the media industry is becoming more complicated and competitive, and Australia needs a strong platform for its sports and locally made programs.
"The new structure will simplify management control and ensure that the company is best placed to leverage the skills of its talented Australian employees and program makers," Mr Thomson said.
The proposed arrangements will better position the new company for an initial public offering in the future, News Corp and Telstra said.
Some commercial terms of the plan have been agreed on, and Telstra and News Corp will now work on legally binding agreements.
The deal could be completed in the first half of 2018, they said.
