Sports streaming company Dazn is buying Australia’s Foxtel Group from majority shareholder News Corp and minority shareholder Telstra in a deal with an enterprise value of $2.2 billion.

The deal, which is subject to regulatory approval, will bring together Foxtel — Australia’s original pay-tv operator, with 4.7 million subscribers — with Dazn, the privately held global streamer owned by British billionaire Len Blavatnik. The Foxtel Group’s business includes sports production company Fox Sports and is the home of local and global entertainment content in Australia.

Rupert Murdoch’s News Corp said the agreement with Dazn follows a strategic and financial review of Foxtel “as part of News Corp’s ongoing efforts to optimize its portfolio and simplify the structure of the company.” Under the terms of the transaction, News Corp and Telstra will become minority shareholders in Dazn, enabling them to retain an interest in Foxtel. The deal is expected to...