An integrated Fox Sports and Foxtel is expected to be a more attractive business because of the value of live sports in Australia. Fox Sports has secured long-term agreements for rugby union, NRL, AFL and the A-League.

In January, Fox Sports chief executive Patrick Delany won the race for the top job of the merged business, with Foxtel chief executive Peter Tonagh leaving the pay TV provider and News Corp altogether.

The new business will have six board members, four from News Corp, including the chairman, while Telstra will appoint the remaining two. News Corp will continue to appoint the executive team. The combined entity will be consolidated into News Corp's financial statements.

'Formidable force'

"The launch of the combined company will mark the dawn of a new era for our Australian business, and Foxtel and Fox Sport Australia will together be a formidable force," News Corp chief executive Robert Thomson said on Tuesday.

"We will be able to use our powerful media platforms to promote the unique sports and entertainment assets in the two companies, and improve services for consumers and advertisers. Patrick Delany and his talented team will be absolutely focused on serving viewers compelling, contemporary Australian content and superlative sports coverage on personalised platforms."

Mr Penn said the merged business will remain an important part of Telstra's media strategy.

"Our customers are streaming more and more sport and entertainment on their TV at home and on their mobile devices while on the move," he said. Telstra will be the exclusive telco sales agent for the combined entity on mobile and IP products and we will continue with our broadcast reseller arrangements."

The Australian Competition and Consumer Commission green lit the transaction in December, declaring it would not substantially lessen competition.

The competition watchdog waved through the deal without a statement of issues, which many industry rivals, such as Fetch, Vodafone Hutchison Australia and Optus, were concerned about and had been expecting.

News Corp and Telstra expect the transaction to be completed during the fourth quarter of the 2017-18 financial year.