Foxtel is set to launch its Olympics subscription drive at the end of the month with a new ad campaign telling the back stories of some of Australia’s athletes. It will be followed swiftly by the pay-TV provider unveiling its new brand positioning and new logo on July 1, following it’s merger with Austar. Continue reading »
Austar
FOXTEL and AUSTAR have completed their merger transaction, creating a national subscription television service that will deliver innovative new digital products and content for all Australian consumers.
The new FOXTEL will directly employ approximately 2,500 people, service 2.2 million subscriber households, and entertain over seven million viewers each week. Continue reading »
Pay TV operator FOXTEL is free to take over regional rival Austar after receiving the competition watchdog’s approval.
The Australian Competition and Consumer Commission (ACCC) on Tuesday said it would not oppose the deal after accepting court-enforceable undertakings from FOXTEL. UPDATE – The deal was alo approved in the high Court today (Friday April 13). Continue reading »
The head of Optus has raised concerns that Foxtel’s proposed purchase of Austar will have a significant impact on competition in the Pay TV industry.
Paul O’Sullivan told delegates at the opening of the CeBIT conference in Sydney this week that he believes the Australian Competition and Consumer Commission (ACCC) needs to look at the deal and the impact it will have on content access.
“We urge the ACCC to use the merger approval process to evaluate creating must-share content provision,” he said.
“We believe Australia must consider similar models to the OECD leading economies, both for news and entertainment-type content and for sport and applications.”
Optus was quick to raise concerns when the deal was struck last week over competition in the industry, particularly in regards to Telstra’s involvement and their ability to exploit triple-play services using NBN.
Source: The Spy Report
FOXTEL notes the statement made by AUSTAR today regarding a proposal by FOXTEL to acquire AUSTAR at a price of $1.52 per share.
FOXTEL confirms it has put a conditional proposal to AUSTAR, which, if implemented,would result in FOXTEL acquiring 100% of the shares in AUSTAR and the merger of the FOXTEL and AUSTAR businesses.
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 believes a merger of FOXTEL and AUSTAR would bring significant benefits to consumers, in particular:
- a merged FOXTEL/AUSTAR will be able to roll out new digital products and services even faster to existing and new customers;
- Australian consumers in regional areas will be able to enjoy access to new digital subscription channels as well as new flexible packages and pricing through products such as FOXTEL on Xbox 360 and FOXTEL on T-Box®
- consumers in regional Australia will also get access to the same quality digital services at the same time as their metropolitan counter parts; and
- the continuation of the long history over the last fifteen years of FOXTEL investing in and being one of Australia’s great innovators in media delivery.
It is FOXTEL’s intention to maintain the world class AUSTAR facility in Robina, Gold Coast, which would be an important part of the combined group.
“This is a logical transaction with significant consumer and industrial upside for all stakeholders. The two companies are a complementary fit,” said FOXTEL CEO Mr Kim Williams AM. “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.”
FOXTEL’s proposal to AUSTAR is indicative, non-binding and subject to a number of conditions and there can be no certainty that any transaction will eventuate.
Conditions to the finalisation of any transaction include the Board of AUSTAR recommending the transaction to AUSTAR shareholders, the completion of due diligence by FOXTEL and entry into definitive transaction documents once approved by the Boards of FOXTEL and its Partners. Any transaction will be subject to regulatory approvals, including from FIRB and the ACCC.
The transaction would be funded by a combination of FOXTEL bank debt and shareholder capital contributions.
FOXTEL is being advised by AquAsia, UBS AG and Allens.
Austar has confirmed it has received a non-binding offer from Foxtel which values the pay TV company at $2 billion.
Austar made the announcement this morning that they had received an “indicative, non-binding and conditional proposal” from Foxtel.
The deal will be subject to approvals from the Australian Competition and Consumer Commission, and the Foreign Investment Review Board.
The deal is said to the value of $1.52 per share.
Regional motorsport fans could be in for some good news soon with confirmation that Austar is in negotiations with Premier Media Group over bringing SPEED to regional Australia.
The motorsport channel launched at the start of this month on Foxtel but not Austar, leading fans to channel their anger on Austar’s Facebook page.
A spokesperson for Austar said: “I know it’s deeply frustrating for customers not to have a definitive answer, but we hope to have one one way or the other soon.”
Source: TV Tonight
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