Australian antitrust regulator has no qualms with News bid for Consolidated Media
By Paul McBeth
Aug. 2 (BusinessDesk) - The Australian Competition and Consumer Commission won't oppose News Corp’s A$1.97 billion
takeover bid for rival Consolidated Media Holdings which would give the Rupert Murdoch-controlled media group control of
Australia's biggest pay-television business Foxtel.
The Australian antitrust regulator decided News Corp acquiring ConsMedia, which is controlled by billionaire James
Packer, won't lead to a substantial lessening of competition, as the pay-TV operator doesn't have other broadcast
interests across the Tasman.
"The ACCC considered that the proposed acquisition was unlikely to materially change News Corporation's incentives in
relation to the supply of content in Australia," chairman Rod Sims said in a statement.
ConsMedia holds a 50 percent stake in Fox Sports Australia and a quarter-stake in pay-TV operator Foxtel. News already
owns half of Fox sports and 25 percent of Foxtel.
The ACCC is still looking at Seven Group's bid to head off the News takeover with its own offer, though it may be
problematic due to Seven's existing television network. Kerry Stokes' Seven Group already holds a quarter of ConsMedia
and can block the News bid.
The News bid came a week before the Murdoch-controlled group announced plans to split its operations into two separately
listed companies along print and broadcasting lines.
The company, which is the biggest shareholder of New Zealand's Sky Network Television, landed itself in hot water when
its British unit was embroiled in a phone-hacking scandal that's resulted in Parliamentary hearings, and criminal
charges being laid.
More recently, News' Australian business unveiled restructuring that will slash its divisions to five from the existing
19, and shift its focus towards digital and pay-TV operations. The move was in reaction to dwindling print advertising
revenues which saw dramatic cuts at rival Fairfax Media which require 1,900 redundancies over the next few years.
Shares in News rose 0.6 percent to A$22.10 on the ASX, while ConsMedia stock gained 0.3 percent to A$3.44, a 1.7 percent
discount to the takeover price.
(BusinessDesk)