foxtel launches bid to buy austar

[bestestimes]

Foxtel launches bid to buy Austar

Subscription TV company Foxtel today launched its long-anticipated bid to buy fellow pay TV platform Austar.

An announcement to the ASX said the company was offering to buy Austar for $1.52 cash per share.

A statement from Austar said: “The non-binding Proposal is subject to a number of conditions including but not limited to: (i) due diligence; (ii) financing; (iii) negotiation and execution of definitive transaction agreements; and (iv) final board approvals.

“The Austar Board, including representatives of Liberty Global, Inc (LGI), believes the value ascribed to AUSTAR is appropriate in the context of a change of control transaction.”

A statement from Foxtel said:A successful transaction would bring together two of Australia’s major subscription TV service providers, creating one of Australia’s largest media businesses with over 2,500 full-time equivalent employees and anticipated revenues of over $2.8 billion with a combined investment in original Australian content of more than $500 million per annum.”

Foxtel boss Kim Williams said: ““This is a logical transaction with significant consumer and industrial upside for all stakeholders. The two companies are a complementary fit. If the merger were to go ahead, it is a win-win transaction that delivers value to Austar shareholders, synergies and growth opportunities for Foxtel and increased services and choice for all consumers.”
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Do you think this merge is a good idea? will it be better for Austar Viewers? as it stands us Austar viewers get less interactive content then that of foxtel viewers and less channels.... maybe it will be good...
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ACCC delays decision on Foxtel-Austar tie up

By Derek Fung | March 28, 2012

Derek Fung CNET Editor


update The Australian Competition and Consumer Commission (ACCC) has delayed a decision on the proposed acquisition of regional pay TV operator Austar by Foxtel.

News of the delay was announced prior to the publication in the Australian Financial Review of a four-year investigation into claims that News Corporation aided and abetted hackers in the practice of hacking and pirating smart cards used in pay TV boxes.

The delay followed submissions by Foxtel and Telstra's competitors, such as Optus and iiNet. In iiNet's submission to the ACCC, it claimed Foxtel's undertakings to provide movies and lifestyle shows to IPTV competitors would "have little (if any) meaningful effect" on the market for compelling content.

The self-proclaimed number two in the DSL broadband market goes on to make the case that recognised content providers, such as National Geographic, will remain exclusive to Foxtel and that the main driver for pay TV in Australia is live sports, such as AFL, NRL, rugby, tennis and cricket.

News Corporation owns 25 per cent of Foxtel, with another 25 per cent owned by Consolidated Media Holdings (CMH), while the remaining half belongs to Telstra. In turn, News Corporation and CMH each hold 50 per cent of Fox Sports.

No new date has been set for a decision from the ACCC. Austar will push ahead with plans for a shareholder meeting to vote on the proposed deal with Foxtel on Friday, 30 July.

Although this delay isn't because of the piracy allegations, Greens communications spokesman Scott Ludlam said today that these allegations were a good reason to delay the decision.

"The takeover would exacerbate the one-way trend towards monopoly in Australia's pay TV sector and until these serious allegations against News Corp entities are resolved the ACCC should put any decision on hold," he said in a statement.

"All relevant material pertaining to the allegations of commercial piracy by News Corp against rival subscription television vendors should be reviewed by the ACCC before coming to a conclusion on the proposed $1.9 billion takeover."

Via Media Spy, TV Tonight, The Australian

[mtv]

All old news.

There's numerous threads about this already.