The transaction remains subject to conditions including the regulatory approval of the ACCC, and the approval of AUSTAR's minority shareholders and the Court. Further details in relation to FOXTEL's proposed acquisition, including the approvals required, can be found in CMH's prior disclosures and in the scheme documentation distributed by AUSTAR.
CMH remains committed to FOXTEL's proposed acquisition of AUSTAR before 30 June 2012. A copy of FOXTEL's media release follows.
ENDS COPIES OF RELEASESCopies of previous ASX announcements issued by CMH are available at CMH's website at www.cmh.com.au
FOXTEL announces undertakings to ACCC to address its concerns Media Release: 7 March 2012
FOXTEL announced it has provided the Australian Competition
and Consumer Commission (ACCC) with undertakings covering
access to exclusive content and access to channel signals.
The undertakings have been provided to address the ACCC's
concerns in relation to FOXTEL's proposed acquisition of
AUSTAR.
FOXTEL's CEO Richard Freudenstein said while FOXTEL strongly
believes the acquisition would not lessen competition, it
would continue to work constructively with the ACCC. FOXTEL
welcomed the ACCC's announcement of a market inquiry into
FOXTEL's proposed undertakings.
The transaction will create one of Australia's largest media
companies, ensure parity of digital entertainment services
for metropolitan and regional Australians, employ 2500 people
and be part of a sector which spends close to $600 million a
year on new Australian content.
Mr Freudenstein said, "We believe this will create a great
Australian media company. It's good for consumers, it's good
for the nation and it's good for business".
While FOXTEL believes the transaction does not substantially
lessen competition, it has provided the ACCC with the
undertakings to facilitate a more expeditious completion of
the transaction than would otherwise have occurred in the
absence of the undertakings.
"FOXTEL's undertakings will ensure that a broad range of
content continues to be available for IPTV players. IPTV
players will also be able to get access to channel signals
from FOXTEL so that they are more easily able to deliver
channels to their customers" he added.
FOXTEL's undertakings cover four broad areas.
- Non-exclusivity over a broad range of channels - FOXTEL is
undertaking not to acquire or renew exclusive new
distribution rights to a broad range of linear and time-
shifted channels unless another bidder is seeking exclusive
rights. These channels include Disney Channel, SKY NEWS,
ESPN, 13th Street, and KidsCo.
This undertaking will ensure IPTV players will have access to
a wide range of channels including where they wish to bundle
content services with telephony and broadband services.
- Non-exclusivity over TVOD movie rights - FOXTEL is
undertaking not to exclusively acquire TVOD (transactional
video-on-demand) movie rights to new release films, unless
another bidder is seeking exclusive rights.
This undertaking will also ensure IPTV players will have
access to transactional movie services including where they
wish to bundle these movie services with telephony and
broadband services.
- Signal access to facilitate IPTV delivery by third parties
- FOXTEL has undertaken that it will provide the signal of
linear channels to IPTV players either via an internet
exchange (located in Sydney) or via access to the satellite
signal. FOXTEL will recover its reasonable and attributable
costs of providing such signals.
This undertaking will enable IPTV players to efficiently
receive the channel signal for channels to which they have
negotiated agreements.
- Special Access Undertaking extended to Austar set top units
- FOXTEL has also agreed that it will extend its current
Special Access Undertaking (which the ACCC accepted in 2007)
to AUSTAR set top units.
This extended undertaking will enable independent channel
providers to access FOXTEL and AUSTAR's over 2.2 million
subscribing households in order to sell their channel
directly to the combined FOXTEL and AUSTAR customer base.
The term of the undertakings is 8 years.
Until the transaction is complete FOXTEL will continue to
provide its service to FOXTEL
customers and AUSTAR will continue to provide its service to
AUSTAR customers.
The proposed transaction remains subject to the approval of
the ACCC and the approval of the AUSTAR minority shareholders
and the Court.
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For more information call Adam Suckling on 0419 205 488
FOXTEL is Australia's leading subscription television provider and is connected to over 1.65 million homes on cable and satellite through retail and wholesale distribution. FOXTEL strives to ensure subscribers find TV they want to watch every time they switch on through delivery of more than 200 channels covering news, sport, general entertainment, movies, documentaries, music and children's programming. FOXTEL is owned by Telstra Corporation Ltd (50%), The News Corporation Ltd (25%), and Consolidated Media Holdings Ltd (25%).