FOXTEL Makes Bid for AUSTAR

SYDNEY: Australian pay-TV platform FOXTEL has made a bid to acquire rival operator AUSTAR for A$1.52 ($1.61) a share to create a merged subscription television provider generating revenues of more than A$2.8 billion ($3 billion) annually.

The A$1.9 billion acquisition would, if accepted, create a merged operation with more than 2,500 full-time employees, anticipated revenues of over A$2.8 billion and combined investment in original Australian content of more than A$500 million ($530 million) per annum.

 FOXTEL notes that a merged platform would be able to accelerate the rollout of new digital products and services. Plus, customers in regional areas would receive access to new digital subscription channels as well as flexible packages and pricing options.

“This is a logical transaction with significant consumer and industrial upside for all stakeholders," said FOXTEL CEO Kim Williams. "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.”