Telstra firm on Foxtel

foxtel logo2After Kerry Stoke’s raid on Consolidated Media Holdings last week, Telstra says it has no intention of losing its 50% grip on Foxtel.

Telstra boss David Thodey said Foxtel is only finally beginning to deliver it a profit.

“We’ve had it now for 10, 11 years, and so we’d like to continue to have that asset,” he said.

Mr Stokes, who owns 48.4 per cent of Seven has long sought to be a player in subscription television, especially since the collapse of the C7 venture.

CMH has a 25% interest in Foxtel.

Last week James Packer hit back at Stokes’ raid, spending $25 million to boost his holding to 39.32 per cent.

But analysts have questioned Stokes’s splurge, which has delivered him a minority stake in a collection of minority media stakes.

Market players said that while the possibility of a Seven bid for Consolidated Media could not be discarded, investors should brace themselves for a lengthy stand-off between two billionaires.

Source: news.com.au, The Age

8 Comments:

  1. If Kerry Stoles manages to take a controlling interest in CMH does that mean he would have to sell his shares in seven because he would own the majority stock of two commercial tv stations.
    Surely that would then lessen competition.

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