Foxtel gets go-ahead for Ten acquisition


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Rebecca Hawkes

| 23 October 2015





The Australian competition watchdog has approved the acquisition by pay-TV operator Foxtel of 15% of Network Ten television.


Concerns had been raised that the A$77 million deal could reduce competition for advertising and premium content such as sports rights, but the Australian Competition and Consumer Commission (ACCC) said these were not backed by sufficient evidence.

Approval was also granted for Ten's proposed purchase of a 24.9% stake in advertising agency Multi Channel Network (MCN) and Ten's option to acquire 10% of the Presto video-on-demand joint venture between Foxtel and the Seven Network.

"While the acquisitions will lead to a greater alignment of Foxtel's and Ten's interests, and will increase the degree of influence Foxtel has over Ten, the ACCC considers that the proposed acquisitions, on their own, are unlikely to result in a substantial lessening of competition," said Rod Sims, chairman, ACCC.

"The ACCC considers the other free-to-air television networks, pay television providers and on-line service providers will continue to have sufficient alternatives to allow them to obtain content that is attractive to their viewers," he added.

The Australian Communications and Media Authority (ACMA) also confirmed it has approved the agreement between Foxtel and Ten, finding that the proposal did not contravene the media diversity and control rules under the Broadcasting Services Act 1992 (BSA).

Foxtel, which is jointly owned by News Corporation and Telstra, welcomed the decisions by the ACCC and the ACMA.

"These transactions will provide much needed capital for Ten and help it to grow revenues by building scale and enhancing services to clients by working with MCN," said Foxtel chairman Richard Freudenstein. "A stronger Ten will further enhance competition in an increasingly competitive local and international media industry."

He added: "The sales representation agreement, by which MCN is selling advertising for Ten, came into effect on 1 September. The teams are now integrated and working well to create better outcomes for clients of both Ten and Foxtel."

The proposed transaction remains subject to certain conditions and regulatory approvals, including by the FIRB.