By Rory Gallivan

LONDON--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)

Copyright (c) 2017 Dow Jones & Company, Inc.
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