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Foxtel launches bid to buy Austar

Subscription TV company Foxtel today launched its long-anticipated bid to buy fellow pay TV platform Austar.

An announcement to the ASX said the company was offering to buy Austar for $1.52 cash per share.

A statement from Austar said: “The non-binding Proposal is subject to a number of conditions including but not limited to: (i) due diligence; (ii) financing; (iii) negotiation and execution of definitive transaction agreements; and (iv) final board approvals.

“The Austar Board, including representatives of Liberty Global, Inc (LGI), believes the value ascribed to AUSTAR is appropriate in the context of a change of control transaction.”

A statement from Foxtel said: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 boss Kim Williams said: ““This is a logical transaction with significant consumer and industrial upside for all stakeholders. The two companies are a complementary fit. 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.”

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