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Delays on Consolidated Media takeover

The ACCC has delayed making a final decision about Kerry Stokes' Seven Group acquiring Consolidated Media.

The Australian Competition and Consumer Commission has delayed making a final decision about Kerry Stokes’ Seven Group acquiring Consolidated Media.

The Australian reports the ACCC has invited further submissions from market players, and has highlighted concerns.

SMH reports The ACCC has withheld is decision over concerns it would result in Foxtel favouring the Seven network over rival networks when it comes to acquiring sporting rights.

“The ACCC considers that this would likely result in FOX Sports favouring Seven Network over rival free-to-air networks. To the extent that Foxtel acquires sporting rights, similar concerns would arise by virtue of Seven acquiring a 25 per cent stake in, and gaining representation on the board of, Foxtel as a result of the proposed acquisition,” the statement said.

“The ACCC’s concerns arise in the free to air television market given the influence Channel Seven may be able to exert over FOX Sports Australia in joint bids and other commercial arrangements in relation to sports rights,” the ACCC said.

News Limited lodged a binding $3.45-a-share takeover offer for ConsMedia earlier this month, valuing the company at $1.94 billion, below the original $3.50 non-binding cash offer tabled for the media investment company in June. If successful, it would gain a 50 per cent shareholding in pay-TV company Foxtel and 100 per cent of FOX Sports.

A final decision is expected by October 11.

5 Responses

  1. Stokes has been trying to get in the STV for decades. Packer and Murdoch blocked him and won a large court case to defend their actions.

    Having allowed Foxtel to pick up Optus and Austar to create a monopoly the ACCC looks like deciding that Stokes must be excluded.

    Channels 10s main assets are FTA broadcast licences and FTA first run rights to US programmes. None of which have any value for STV.

    10 would be come a minor STV channel competing with Showtime’s, FX, Soho and News Ltd/Consolitated Media’s channels paying Foxtel (Telstra + News Ltd/CM) a fortune to reach viewers. Oh yes and Lachlan Murdoch is of Network 10’s largest shareholders and current chairman.

    The only possible game change in STV on the horizon is the NBN.

  2. But apparently Packer owning half of Foxsport and other content suppliers to Foxtel while owning Channel 9 the number one FTA station was perfectly OK. Even though they screwed the NRL, Telstra and Channel 7 out of billions.

    Yet Stoke buying Packer’s share while owning Channel 7 is now a problem.

  3. @Josh777. Fox Sports showed both the NBL and Netball but it was these two organisations not Foxtel that removed their coverage from Fox Sports. Both went to Channel 10. With Netball to return back to Foxtel next year.

  4. The nbl model is the way of the future. I subscribe to the MLB version and will get the nba version in October. All games, live and in good quality picture. I never thought I would say this but I can’t see myself with foxtel within the next 2 years.

  5. I can definitely see the ACCC’s problem with Seven having a 50% stake, and I think that News Corp. would be far better owning the company 100% as they are the best network in the world when it comes to sports channels.
    I think it is about time that FTA networks expanded their portfolios into STV channels. TEN are obviously failing so why not cut their loses and launch a niche entertainment STV channel with their programming rights, or the three networks going in on a sports channel, airing their sporting rights live in HD across the country while it airs in SD on their FTA channels in varied time slots based on time zone differences. National sporting networks are the thing at the moment in the U.S. (NBC Sports Network, CBS Sports Network, and ABC/ESPN) so why not expand it to here? I’m sure the NBL, WNBL, W-League and Netball Australia would love to be aired on a new channel competing with the big shots of FOX Sports and ESPN who haven’t given them a shot.

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