Rumour has it a takeover could be on the cards. Foxtel shareholders which includes Telstra, Consolidated Media and Rupert Murdoch’s News Ltd are said to be mulling over a possible deal and may be “getting closer to agreeing on a potential bid price,” according to the Australian, owned by News Ltd.
This is not the first time a takeover deal has been played out for the regional pay TV outfit, however.
Both News Ltd and Consolidated attempted to get deals up in 2005 and 2007 which was subsequently rejected by 50 per cent shareholder Telstra.
Austar CEO, John Porter has gone on record as voicing his support for the deal, declaring there was “so much compelling industrial logic” to a merger deal with Foxtel.
However, he insisted his company “has not received any offer” to date.
However, Porter has just jumped on a plane bound for the US accompanied by Foxtel CEO Kim Williams, which indicates talks with Austar’s main shareholder Liberty Global, which owns 55, percent are underway.
Austar, which also has a mobile and broadband division, has 760,000 subscribers and is the largest pay television operator in regional Australia.
Established in 1995, its service includes over 180 channels, 13 HD Channels, a near video-on-demand service, as well as box office movies, Sports Active and SKY News Active.