Foxtel is moving forward with its investment in Network Ten, after The Australian Competition and Consumer Commission (ACCC) and the Australian Communications and Media Authority (ACMA) have both greenlit the deal.
According to the deal, Foxtel will acquire up to 15% of the shares in the Ten Network and the Ten Network purchase a 24.9% interest in MCN. Even though ACCC expressed concerns about the transaction, stating that the acquisitions would lessen competition for important sports rights which would be detrimental to other free-to-air providers, the commission recently decided to greenlight the deal; as did the ACMA.
Foxtel CEO, Richard Freudenstein, welcomed the decision of the ACCC and the ACMA not to oppose the transactions.
“These transactions will provide much needed capital for Ten and help it to grow revenues by building scale and enhancing services to clients by working with MCN. The sales representation agreement, by which MCN is selling advertising for Ten, came into effect on 1 September. The teams are now integrated and working well to create better outcomes for clients of both Ten and Foxtel”, said Freudenstein.
The proposed transaction remains subject to certain conditions and regulatory approvals, including by the FIRB.
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