Media conglomerate News Corporation’s hopes of acquiring Australian media investment company Consolidated Media Holdings have been boosted after the Australian Competition and Consumer Commission, the country’s competition watchdog, blocked the Seven network from submitting a rival bid.
“The proposed acquisition would put Seven Network in a position of advantage over other free-to-air networks in relation to… the acquisition of sports rights,” the regulator’s chairman, Rod Sims, said. “[It] would significantly reduce the ability of Seven Network’s competitors to acquire such content.”
Seven, which owns 24 per cent of Consolidated, had sought clearance from the watchdog on a potential bid after the News Limited division of News Corp agreed a takeover price of A$2 billion (€1.6 billion/$2.1 billion) for the investment company.
Consolidated’s board is expected to approve the takeover, which received regulatory approval in June. A board vote has been scheduled for October 31.
Consolidated has a 25-per-cent stake in Australia’s dominant pay-television operator Foxtel and a 50-per-cent stake in pay-television broadcaster Fox Sports Australia.