Fox News, owned by Rupert Murdoch’s News Corp., is planning to sell its Fox Business Network to Amazon for $17.5 billion.
The deal is expected to close in the second half of next year, according to people familiar with the matter.
The sale is expected in conjunction with Amazon’s acquisition of the streaming media company Prime, which would create a new rival to CNN and MSNBC.
Fox News declined to comment.
Fox Business is expected be one of the biggest pay-per-view hits of the year.
The company had about 1.5 million subscribers in the U.S. and had been on a strong upward trajectory.
The cable news channel’s ratings have been falling since President Donald Trump was elected, with its average audience shrinking by 5 percent each month from mid-November through April.
But Fox has been struggling, with advertisers cutting back on advertising during the holiday season.
The move could give Amazon a stronger foothold in cable news, and give Fox News more of a competitive advantage in a market dominated by CNN and NBC.
The Amazon purchase comes at a time when the company is facing a legal battle with CNN over a separate lawsuit over the network’s reporting of the shooting of a black man by a white police officer.
Fox has long argued that the network has a right to broadcast a story without fear of being sued.
CNN declined to make a comment.
The new deal could give Fox an advantage over other media companies that have made similar moves to boost their cable news output.
In 2016, Amazon bought Vox Media, which produces the popular podcast “Tropic of Capricorn,” for $3.7 billion.
Earlier this year, Facebook bought the popular news site Mashable for $2.4 billion.
Last year, Time Warner Cable purchased Buzzfeed, which had over 6 million subscribers, for $1.8 billion.