Fox Corp. (FOXA) - Get Fox Corporation Class A Report on Monday reportedly completed its acquisition of entertainment media company TMZ from AT&T's (T) - Get AT&T Inc. Report WarnerMedia for an estimated $50 million.
The sale includes the company's television shows "TMZ" and "TMZ Live," as well as its other assets that include its TMZ Sports digital site, TooFab celebrity, cultural and lifestyle unit and TMZ.com, Variety reported.
TMZ founder Harvey Levin will continue to operate the company and report to Rob Wade, president of Fox Entertainment's alternative and specials.
"The unique and powerful brand Harvey has created in TMZ has forever changed the entertainment industry and we're excited to welcome them to Fox," Fox Chairman and CEO Lachlan Murdoch said, according to Variety. "TMZ has been and impactful program for our Fox television stations and broadcast partners for many years and I know Jack Abernathy and Charlie Collier will find creative ways to utilize and expand this content in effective and compelling ways for our audiences."
Collier is Fox Entertainment's chief, while Abernathy is Fox Television Stations' president.
WarnerMedia sold TMZ as part of parent company AT&T's plan to sell off non-core assets to reduce over $150 billion in debt load.
"Harvey Levin created a groundbreaking destination for entertainment news, and for the past 15-plus years TMZ has celebrated great success," Warner Bros. Television Group Chairman Channing Dungey said in the report. "TMZ will now be more closely aligned with the distributor of the popular content they create, and WarnerMedia wishes Harvey and everyone on the team the best as they venture into a new partnership with the talented team at Fox."
Shares of Fox fell 0.4% to $36.20 after hours on Monday. The stock closed up 1.1% to $36.34 in the regular session. AT&T's shares rose 0.2% to $27.57 after hours. The stock closed up 1.3% to $27.52 in the regular session.