News Corp is even closer than ever to assure for itself a large and top position in the free-to-air television market from Australia. That’s because competition authorities have just offered a consortium to which Lachlan Murdoch is in charge access to the purchase of Ten Network.
Competition Authorities Believe that Murdoch’s Purchase Won’t Disrupt Dramatically the Australian Market
On Thursday, the Australian Competition and Consumer Commission announced clearance for News Corp to invest in Ten Network. The competition authorities affirmed that there would be no major competition threats resulting from this particular deal. On the other hand, the agency did highlight the fact that this acquisition would affect local media diversity as the Murdoch influence would expand even further within the Australian market.
“While the transaction will result in some reduction in diversity across Australian media landscape, we have concluded it would not substantially lessen competition.”
At the same time, Rupert Murdoch finds himself in a similar situation yet on a different continent. His 21st Century Fox company awaits the decision of UK authorities. They are assessing whether the £11.7bn offer to buy BSkyB would represent too much power for a brand that is already perceived as a media mogul.
Rupert’s son, Lachlan Murdoch, has partnered up with Bruce Gordon for a joint deal in exchange for Ten Network. Bruce Gordon is an Australian party that owns WIN and a stake in Nine Entertainment. This makes him a rival among air television networks.
The Government Believes Murdoch’s Joint Deal Is the Only Chance Ten Network Has to Save Itself
Ten Network is currently in a difficult position. It was only last month when such a business enjoyed the support of rich shareholders. However, these influential backers decided to withdraw their support the moment the company decided it was time for a loan guarantee as it was struggling with low audience traffic.
Nonetheless, Murdoch needs additional clearances to honor the deal. The government has to vote within several weeks to whether to allow or not this purchase. On the other hand, the government persuaded independent senators to vote positively. The authority believes this is the only chance Ten Network has to save itself from extinction.
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