Austar turns up the heat on Foxtel
If Foxtel is planning a takeover of Austar, it just got given a message to hurry up.
- Published by David Knox
- on
- Filed under Subscription
Regional Pay TV provider Austar has sent a message to Foxtel to make a bid for the company or move along.
Or as The Australian phrases it, “put up or shut up.”
It has more than $200m of capital it is looking to distribute amongst its shareholders.
So far, Austar han’t received any proposals from Foxtel, but told the Herald Sun the two companies talk every day.
BBY telecommunications analyst Mark McDonnell said, “(CEO) John Porter essentially said today that Foxtel should get its timing right . . . it can either move now and share in the $200 million or it can wait six weeks, until after the AGM approves the payout and miss out on the capital return.
Any bid for Austar would need to be attractive to the company’s 54 per cent shareholder, Liberty Global, which is controlled by US cable billionaire John Malone. It is looking to do so now while the Australian dollar is so high.
Porter reported a first-quarter net profit increase of 355 per cent to $74 million, despite having lost subscribers due to the floods early this year.
9 Responses
There only a gentlemen agreement preventing foxtel from going national. It can be broken too!
David do you think if this happens will the cost for foxtel go up?
It’s taken too long – seriously don’t think it will happen now 🙁
I think Austar should be bought out asap. However i worry that if this happens PayTV costs will go through the roof because there is no competition. So i don’t know. I want it to happen but then again i don’t want it to happen so.
Foxtel better get cracking on buying out Austar because all of this uncertainty is not doing either company any good. Personally Austar should be bought out as soon as possible by Foxtel.
Austar is going the way of the dodo, in 10 years time everyone will be on iptv.
Would someone buy Porter a one-way ticket back to Texas, please?
I just want to know if this happens will it improve my service?
I reckon pay tv providers will be on a long term decline due to IPTV unless they can corner this sector of the market. The rollout of the NBN will be a big factor in this although I do much streaming as it is on ADSL2+. Just think of all the satellite TV infrastructure they have in assets which will decline in value.