News Corp is paying $2,5bn to acquire Australian News Corporation, the Australian Financial Review can reveal.
The deal, announced by the company on Thursday morning, is the largest in Australia’s history.
The company said the transaction would deliver a diversified digital offering, including a range of new content and digital services for Australian audiences, with a strong presence in the US, and the ability to access the full range of its Australian assets and business.
Key points: News Corp will create the world’s largest online content business News Corp announced it was paying $1.9bn to buy Australian news company News Corp last monthThe deal will combine Rupert Murdoch’s News Corp with News Corp Australia’s online business, including newspapers, online video and news.
The new news and entertainment arm of News Corp would have its online operations in the United States, the UK, Germany and Australia, with the company focusing on US and UK markets.
It will also offer digital content including digital radio, a news app, news websites, and mobile apps, with an option for local content in Australia.
News Corp said it will combine the News Corp Australian and News Corp New Zealand brands.
In a statement, News Corp said: “We believe the combination of Rupert Murdoch and News Corporation Australia is the best of all worlds.
We are delighted to announce this historic transaction.”
It said the News Corporation Australian and Australian News businesses would continue to operate as separate entities.
The acquisition of NewsCorp will create a $6.2bn company with a combined global value of $7.6bn, which News Corp previously said was a “significant achievement” that would lead to a diversification of Australian media.