News Ltd has made a formal offer for James Packer's Consolidated Media, but it's lower than its original bid.
In a binding proposal made by News, the Rupert Murdoch-controlled company has offered $3.45 for each ConsMedia share, less than the $3.50 it offered in an indicative bid in June.
The binding proposal values ConsMedia at $1.94 billion.
ConsMedia owns a 50 per cent stake in Fox Sports and 25 per cent of Foxtel.
If the offer is successful, News will take control of Fox Sports and own half of Foxtel.
ConsMedia directors would unanimously recommend the offer to the company's shareholders, executive chairman James Packer said.
"In my view, this is a great outcome for (ConsMedia) shareholders and for News, and it reflects a fair price," he said in a statement on Friday.
The Australian Competition and Consumer Commission (ACCC) and Foreign Investment Review Board (FIRB) have already given their approval for the News' takeover bid.
It also requires ConsMedia shareholders approval.
However, Kerry Stokes' Seven Group has signalled it may launch a rival offer, and is awaiting clearance from the ACCC on a possible bid.
If News' offer is successful, a takeover could be completed by the end of November, the two companies said today.
Mr Packer, who holds just over 50 per cent of ConsMedia shares, said he intended to vote in favour of the News takeover.
Seven Group holds a 25.3 per cent stake in ConsMedia.
A shareholder vote is scheduled to be held at ConsMedia’s annual general meeting on October 31.
ConsMedia shares fell on the news, down two cents to $3.42 at 8.48am.
ConsMedia ended down two cents at $3.42, while News was up 34 cents at $23.86 and its non-voting scrip was 44 cents higher at $23.71.