New Australian Media Ownership Rules Pass; Two Big Deals Announced
October 18, 2006 at 7:47 AM (PT)
It took mere moments for two big media deals to be announced after the Australian parliament approved a new law allowing more media cross-ownership and foreign investment on WEDNESDAY (10/18).
The PACKER family's PUBLISHING AND BROADCASTING LTD. sold half of its interests in TV's NINE NETWORK and ACP MAGAZINES to private equity group CVC ASIA PACIFIC for A$4.5 billion, creating a new company, PBL MEDIA LTD., which will pursue media deals while the parent PBL company looks for investments in the gaming indistry. Shortly after that deal was announced, SEVEN NETWORK owner KERRY STOKES, through CITIGROUP, bought an 8.5% stake in WEST AUSTRALIAN NEWSPAPER HOLDINGS, publisher of PERTH daily THE WEST AUSTRALIAN and owner of several radio stations, newspapers and magazines.
Rumors of a possible takeover of newspaper giant FAIRFAX (SYDNEY MORNING HERALD, MELBOURNE AGE) and several possible radio takeovers are rampant as the new rules loosen media industry ownership restrictions.