James Packer will reportedly sell his 25% stake in Foxtel for approximately $1 billion.
News Corp is the likely buyer, according to the Herald Sun.
Business journalist Terry McCrann says Packer wants the cash to pursue a full merger of his Crown Casino in Melbourne and Sydney’s Star Casino to create a $10 billion gambling giant.
McCrann said News Corp effectively controls Foxtel, as it has the right to appoint the chief executive.
Get business news first
Sign up to SmartCompany’s daily newsletter
Perth billionaire Kerry Stokes’s Seven West Media, which controls both the Seven Network and The West Australian newspaper, also wants a slice of Foxtel.
The Melbourne tabloid said if Seven were to acquire a stake in Foxtel it could be held up for a year or more while the competition watchdog studied the deal.
Investment bank, UBS has been mandated to handle the sale, according to the Australian.
Telstra, which owns 50% of Foxtel, has also indicated it is interested.