Telstra tipped to offload its Foxtel stake as Nine buys 9.9% of Southern Cross Austereo
The consolidation of Australian media appears to be gathering momentum with Nine Network buying nearly 10% of Southern Cross Austereo and Telstra hotly tipped to sell its 50% stake in Foxtel.
Speculation around Telstra’s move to sell out of the pay-TV operator emerged on the same day that Foxtel CEO Richard Freudenstein stepped down and was replaced by News Corp CEO Peter Tonagh.
The Australian Financial Review reports Telstra is considering a $4.5bn initial public offering (IPO) or sale of its 50% stake to fellow shareholder News Corp Australia.
Mumbrella understands one scenario might see News Corp fold-in Fox Sports before also moving to IPO.
The news of the potential sale comes on the same day that Nine Entertainment bought a major strategic stake in regional broadcaster Southern Cross Austereo.
Nine confirmed it has acquired 9.9% of shares in the regional broadcaster, which also operates the Hit and TripleM radio networks, from Macquarie Group at $1.15, in a move that is set to fuel speculation about a potential merger should the government’s media reform package pass parliament.
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The shares were sold by the Macquarie Group which offloaded a 15.7% stake, worth $130 million at $1.08 each.
Earlier this week, an exclusive negotiating period between SCA and its affiliate metro broadcaster Network Ten expired.
Nic Christensen
So even Telstra realise that Foxtel has peaked and it’s all downhill from here. For their sake lets hope they sell before the start of the next EPL season and that subscriber exodus.
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An IPO seems an odd choice when everything points to these companies struggling to maintain revenue amid the move to digital and away from subscription TV services.
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