News Corp, Telstra Corp to merge Foxtel into FOX SPORTS Australia

News Corp (NWSA) and Telstra Corp Ltd (TLS.AU) announced plans to merge their jointly owned pay television company Foxtel into News Corp's FOX SPORTS Australia to create a large Australian sports and entertainment company.

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

The merger will position the new company for a future stock market flotation, News Corp and Telstra said.

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

-Write to Rory Gallivan at rory.gallivan@wsj.com; Twitter: @RoryGallivan

(END) Dow Jones Newswires

August 17, 2017 06:35 ET (10:35 GMT)