Dec 23 (Reuters) - Rupert Murdoch's News Corp ( NWSA )

said on Monday it would sell its Australian cable TV and

streaming unit Foxtel to British over-the-top sports streaming

and entertainment platform DAZN for A$3.4 billion ($2.1

billion), including debt.

As part of the deal, Foxtel's current debt will be

refinanced at closing and News Corp ( NWSA ) will hold a 6% stake in

DAZN, a London-headquartered global streaming platform backed by

billionaire Len Blavatnik.

The sale relieves News Corp ( NWSA ), which owns print mastheads such

as the Wall Street Journal, of its involvement in an asset that

has struggled to cope in an era dominated by streamers like

Netflix ( NFLX ).

Foxtel has weighed on News Corp ( NWSA ) profit for years as the

number of people who pay monthly subscriptions for its broadcast

content switch to cheaper streaming options. Foxtel has itself

launched a streaming service charging less than its traditional

service.

News Corp ( NWSA ) will get one board seat at DAZN, which was founded

in 2016 and is ramping up its efforts to become a global

streaming platform like Apple TV.

The U.S. firm flagged in early August it might sell Foxtel

after having received an approach.

Australian telecommunications firm Telstra ( TTRAF ) will

also divest its 35% stake in Foxtel, for A$128 million, and will

emerge as a 3% stakeholder in DAZN.

The deal remains subject to regulatory approvals and is

expected to close in the second of fiscal 2025.

ASX-listed shares of News Corp ( NWSA ) gained 1% to A$49.65 in early

trade while shares of Telstra ( TTRAF ) traded 0.4% higher against a

rising broader benchmark index.

($1 = 1.5997 Australian dollars)