Rupert Murdoch’s News Corp launches $2 bn bid for Australia's ConsMedia
20 Jun 2012
News Corp, owned by embattled media baron Rupert Murdoch, yesterday offered to pay A$2 billion ($2 billion) in cash for Australia's Consolidated Media Holdings Ltd, a stakeholder in Foxtel and Fox Sports.
Telstra Corp holds 50 per cent in pay-TV network Foxtel, while News Corp and ConsMedia hold 25 per cent each, and Fox Sports is a 50:50 partnership between News Corp and ConsMedia.
The ConsMedia deal would give News Corp a 50-per cent stake in Foxtel and full ownership of the Fox Sports business in Australia with broadcast rights to the most popular football games.
Billionaire James Packer, who owns 50 per cent of ConsMedia has backed the A$3.50 a share offer from News Corp's Australian unit News Ltd.
Packer, executive chairman of ConsMedia, said that the company welcomes News' proposal and looks forward to both working together to address the detailed terms and conditions.
Packer's backing for the acquisition is conditional on no better offer being received. Billionaire Kerry Stokes' Seven Group Holdings is the second-largest shareholder in ConsMedia behind Packer, with a 24-per cent stake.