Regulator deals blow to Foxtel's bid for Austar

[ejbr]

Source: Sydney Morning Herald

The competition regulator has raised concerns that the planned $2 billion takeover of pay TV operator Austar by rival Foxtel, part owned by Rupert Murdoch's News Corp, could hurt competition on three fronts.

The Australian Competition and Consumer Commission today delayed its decision on Foxtel's bid until September, indicating it sees problems in it proceeding at all.

The ACCC said it has a preliminary view it would substantially lessen competition in pay TV, the market for buying programs and that for the supply of telecommunications products because it is half owned by Telstra.

Austar shares crashed on the news, losing as much as 17 per cent in early trading, or 22.5 cents, to $1.07, valuing the company at just under $1.35 billion.




Read more: http://www.smh.com.au/business/regulator-deals-blow-to-foxtels-bid-for-austar-20110722-1hrsr.html

[Dawson Leery]

1. Every day it gets worse for Murdoch and Newscorp.

This is the second buyout that has been defeated.

[Violet_Crumble]

2. Here's hoping the ACCC turns the delay into an outright 'fuck off, Rupert!' n/t

[Matilda]

3. It probably would have gone through smoothly

if it hadn't been for the furore in Britain.

Murdoch has far too much media power here already (thank you, Paul Keating), and it's time he was stopped in his
tracks.

[Firebrand Gary]

4. K&R