Telstra and News Corp sign Foxtel-Fox Sports deal

Telstra Corp and News Corp on Tuesday confirmed they would combine Foxtel and Fox Sports Australia, two months after the competition watchdog dropped its opposition to the merger.

Fox Sports is owned by News Corp, which also owns Foxtel jointly with Australia's Telstra.

Telstra expected to record a one-off accounting gain, estimated at $263 million, as a result of the deal, it said in a separate statement.

However, the company's previously stated guidance for financial year 2018 remains unchanged.

Under the terms of the deal, News Corp will hold 65 per cent in the combined venture and Telstra 35 per cent. News Corp will appoint four directors, including the chairman, and Telstra will appoint two directors.

The transaction is expected to close during the fourth quarter of this year.

Reuters