News Corp Affiliate Foxtel Faces Regulator Block On A$2.5 Billion TV Deal
22 July 2011 - 11:02AM
Dow Jones News
News Corp. (NWS) affiliate Foxtel's proposed 2.5 billion
Australian dollar (US$2.7 billion) takeover of regional pay
television company Austar United Communications Ltd. Ltd. (AUN.AU)
was knocked back Friday when the country's competition regulator
said it's concerned the deal would create a near-monopoly.
In its statement of issues, the Australian Competition and
Consumer Commission, said the deal "is likely to result in a
substantial lessening of competition" in the pay-TV services
market, the market for TV content, and several markets for
telecommunications products in Australia.
Foxtel is 50% owned by Telstra Corp. (TLS.AU) and 25% each by
News Corp. (NWS) and Consolidated Media Holdings Ltd. (CMJ.AU).
News Corp., owner of Dow Jones & Co., the publisher of this
newswire, is fighting to contain a phone hacking scandal that has
engulfed its tabloid newspaper assets in the U.K. The regulator's
near rejection of the deal comes amid calls from Australian
lawmakers to review media ownership after the scandal in the
U.K.
News Corp. dropped its bid to take over the 60% of U.K.
subscription TV company British Sky Broadcasting (BSY.LN) amidst
heavy criticism of the phone hacking controversy that forced it to
close its best selling tabloid paper, The News of The World. A
spokesman for News Corp's Australian unit News Ltd. referred all
questions to Foxtel. Spokespersons for Foxtel and Austar were
unreachable for comment.
The regulator has called for further information on the deal
before it makes its final ruling on Sept. 8. However, the regulator
has rarely changed its preliminary view on a deal, although it did
recently overturn a call to block an alliance between Virgin
Australia and Air New Zealand but with conditions.
-By David Fickling and Gavin Lower, Dow Jones Newswires; +61 2
8272 4689; david.fickling@dowjones.com
Ross Kelly in Sydney contributed to this article.
Aurumin (ASX:AUN)
Historical Stock Chart
From Apr 2024 to May 2024
Aurumin (ASX:AUN)
Historical Stock Chart
From May 2023 to May 2024
Real-Time news about Aurumin Limited (Australian Stock Exchange): 0 recent articles
More Austar United Communications News Articles