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News Corp picks merger deal over Ten

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Original article by Max Mason
The Australian Financial Review – Page: 29 : 21-Aug-17

News Corp will increase its stake in Foxtel from 50 per cent to 65 per cent if a proposed merger between the pay-TV group and Fox Sports proceeds. This would make it harder for the joint venture between Lachlan Murdoch and Bruce Gordon to acquire the Ten Network, given that Murdoch is co-chairman of News Corp and the owner of Nova Entertainment. Murdoch and Gordon are said to have submitted a conditional bid for Ten, but they may be thwarted by the Federal Government’s failure to pass its media reform bill in the Senate. Offers to acquire Ten had to be submitted by 18 August.

CORPORATES
NEWS CORPORATION – ASX NWS, NEWS CORP AUSTRALIA PTY LTD, FOXTEL MANAGEMENT PTY LTD, FOX SPORTS AUSTRALIA PTY LTD, TEN NETWORK HOLDINGS LIMITED – ASX TEN, NOVA ENTERTAINMENT PTY LTD, TELSTRA CORPORATION LIMITED – ASX TLS, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, OAKTREE CAPITAL MANAGEMENT LLC, ANCHORAGE CAPITAL GROUP LLC, SKY NEWS, REA GROUP LIMITED – ASX REA, HT&E LIMITED – ASX HT1, MULTI CHANNEL NETWORK PTY LTD, BIRKETU PTY LTD, ILLYRIA NOMINEES TELEVISION PTY LTD, WIN CORPORATION PTY LTD

Retailer Godfreys sucks it up and goes back to basics

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Original article by Simon Evans
The Australian Financial Review – Page: 26 : 18-Aug-17

Vacuum cleaner retailer Godfreys Group has posted a 2016-17 net loss of $A18.4 million. Revenue declined by 2.9 per cent to $A174.1 million, while 22 of its company stores were converted to franchise outlets during the year. Analysts see Godfreys falling behind stores like JB Hi-Fi and Harvey Norman in the $A1.3 billion Australian vacuum cleaner sector, while the pending arrival of Amazon presents another challenge for the group.

CORPORATES
GODFREYS GROUP LIMITED – ASX GFY, JB HI-FI LIMITED – ASX JBH, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, AMAZON.COM INCORPORATED, WERTHEIM SCHRODER AND COMPANY, HOOVER (AUSTRALIA) PTY LTD, DYSON INDUSTRIES LIMITED

Telstra, News in Foxtel deal ahead of float

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Original article by Darren Davidson
The Australian – Page: 17 & 21 : 18-Aug-17

Telstra and News Corp aim to secure regulatory approval for a proposed merger of Foxtel and Fox Sports by April 2018. They each own 50 per cent of Foxtel at present, but Telstra would reduce its stake in the combined Foxtel-Fox Sports to 35 per cent if the deal proceeds. News Corp CEO Robert Thomson says the merger would unlock value for the media group, which would have a 65 per cent stake in Foxtel-Fox Sports. The deal would enhance Foxtel’s ability to bid for sports broadcasting rights amid growing competition.

CORPORATES
NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, TELSTRA CORPORATION LIMITED – ASX TLS, FOXTEL MANAGEMENT PTY LTD, FOX SPORTS AUSTRALIA PTY LTD, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, ESPN INCORPORATED, BEIN SPORTS, SINGTEL OPTUS PTY LTD, ENGLISH PREMIER LEAGUE, NETFLIX INCORPORATED, AMAZON.COM INCORPORATED, YOUTUBE INCORPORATED, GOOGLE INCORPORATED, TWITTER INCORPORATED, FACEBOOK INCORPORATED, AUSTRALIAN FOOTBALL LEAGUE, NATIONAL RUGBY LEAGUE, NICK XENOPHON TEAM, 21ST CENTURY FOX INCORPORATED

Senate deadlock hits Ten’s rescue hopes

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Original article by David Crowe, Darren Davidson
The Australian – Page: 1 & 2 : 18-Aug-17

Cross-media ownership reforms are in doubt after the Federal Government rejected a proposal by Senator Nick Xenophon to provide tax incentives for small media companies. The tax offset would have been available for the Australian editions of foreign publications such as "The Guardian", which Communications Minister Mitch Fifield says is inappropriate. The stalled media reform bill will effectively prevent most Australian media companies from bidding for the Ten Network. The deadline to submit bids is 18 August.

CORPORATES
NICK XENOPHON TEAM, AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, TEN NETWORK HOLDINGS LIMITED – ASX TEN, WIN CORPORATION PTY LTD, NEWS CORPORATION – ASX NWS, NEWS CORP AUSTRALIA PTY LTD, ANCHORAGE CAPITAL GROUP LLC, SKY NEWS, AUSTRALIAN LABOR PARTY, PPB ADVISORY, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, AUSTRALIAN BROADCASTING CORPORATION, SEVEN WEST MEDIA LIMITED – ASX SWM, SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, GOOGLE INCORPORATED, FACEBOOK INCORPORATED

Forrest wins fight to keep miners off his land

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Original article by Paul Garvey
The Australian – Page: 17 & 21 : 18-Aug-17

The High Court has upheld Andrew Forrest’s challenge to the validity of licences that were issued to Yarri Mining and ­Onslow Resources to mine sand on his Minderoo cattle station in Western Australia. The court ruled that the private companies’ mining proposals and mineralisation reports had been lodged after their mining lease applications, in breach of the Mining Act. The ruling could have implications for other mining licences in WA, and Gilbert + Tobin partner Marshall McKenna estimates that around five per cent of mining leases in the state could now be invalid.

CORPORATES
YARRI MINING PTY LTD, ONSLOW RESOURCES LIMITED, HIGH COURT OF AUSTRALIA, GILBERT AND TOBIN LAWYERS, WESTERN AUSTRALIA. DEPT OF MINES, INDUSTRY REGULATION AND SAFETY, FORTESCUE METALS GROUP LIMITED – ASX FMG, CAULDRON ENERGY LIMITED – ASX CXU, PERTH GLORY SOCCER CLUB PTY LTD

Tax break idea worthy, but unworkable

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Original article by David Crowe
The Australian – Page: 4 : 17-Aug-17

Senator Nick Xenophon’s proposal to provide a 40 per cent tax break for smaller media companies has merit, and it is likely to benefit the publishers of newspapers such as "The Saturday Paper" and websites like "The New Daily". However, the Federal Government would need to determine whether the local editions of overseas publications would be eligible for the tax break. There is also the question of whether taxpayers should subsidise small media outlets that would be competing with the monolithic ABC for both funding and audiences.

CORPORATES
NICK XENOPHON TEAM, AUSTRALIAN BROADCASTING CORPORATION, SCHWARTZ MEDIA PTY LTD, THE NEW DAILY, THE GUARDIAN AUSTRALIA, DAILY MAIL AUSTRALIA, THE HUFFINGTON POST, POLITIFACT AUSTRALIA

Sports rights at a tipping point: Worner

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Original article by Max Mason
The Australian Financial Review – Page: 1 & 4 : 17-Aug-17

The cost of broadcasting rights for major sports events has risen sharply in recent years, but Seven West Media CEO Tim Worner says media companies cannot afford to pay any more than at present when negotiating new deals. He adds that rights deals should reflect the higher profile that free-to-air coverage has brought to sports that were previously exclusively on pay-TV. Nine Entertainment Company CEO Hugh Marks says that while Nine is keen to secure the rights to all cricket formats, the cost and likely financial returns will be key considerations.

CORPORATES
SEVEN WEST MEDIA LIMITED – ASX SWM, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, BIG BASH LEAGUE, CRICKET AUSTRALIA, AUSTRALIAN FOOTBALL LEAGUE, TEN NETWORK HOLDINGS LIMITED – ASX TEN, YAHOO!7 COMMUNICATIONS AUSTRALIA PTY LTD, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, FOXTEL MANAGEMENT PTY LTD, TELSTRA CORPORATION LIMITED – ASX TLS

Xenophon deal on media rules within reach

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Original article by Rosie Lewis
The Australian – Page: 4 : 17-Aug-17

The Australian Government is expected to put its media reform bill to the Senate in its current form in order to secure the support of the Nick Xenophon Team. The minor party opposes the Government’s deal with One Nation to impose new obligations on the ABC and SBS, and these amendments are likely to be put on hold due to lack of sufficient support in the upper house. The Government is also said to be assessing the cost of proposals put forward by Senator Nick Xenophon in return for supporting the media reforms.

CORPORATES
NICK XENOPHON TEAM, ONE NATION PARTY, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, AUSTRALIAN BROADCASTING CORPORATION, SPECIAL BROADCASTING SERVICE (SBS), LIBERAL DEMOCRATIC PARTY, AUSTRALIAN CONSERVATIVES, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, GOOGLE INCORPORATED, FACEBOOK INCORPORATED

Iluka revealed its own bribery scandal

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Original article by Nick McKenzie, Richard Baker
The Australian Financial Review – Page: 1 & 10 : 16-Aug-17

Mineral sands miner Iluka Resources is the latest Australian company to become caught up in a bribery probe. The allegations centre on Sierra Rutile, which Iluka acquired in 2016, and Iluka informed international authorities as soon as it became aware of the potential scandal. Amongst other things, it has been alleged that former Sierra Rutile CEO John Sisay facilitated the payment of bribes to government officials in Sierra Leone to obtain mining licences that were subsequently transferred to Iluka. Sisay is seeking to become the next president of Sierra Leone.

CORPORATES
ILUKA RESOURCES LIMITED – ASX ILU, SIERRA RUTILE LIMITED, FREEHILLS PTY LTD, GREAT BRITAIN. SERIOUS FRAUD OFFICE, RIO TINTO LIMITED – ASX RIO, CIMIC GROUP LIMITED – ASX CIM, GETAX AUSTRALIA PTY LTD, SUNDANCE RESOURCES LIMITED – ASX SDL, SMEC AUSTRALIA PTY LTD, TENIX PTY LTD, UNIVERSITY OF LONDON, IMATRIX 101 LIMITED

Hanson deal on media laws

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Original article by Rosie Lewis, Darren Davidson, Primrose Riordan
The Australian – Page: 1 & 3 : 16-Aug-17

The Federal Government has agreed to a number of concessions to secure One Nation’s support for its cross-media ownership reforms in the Senate. Amongst other things, the ABC and SBS will be required to disclose the salaries of their highest-paid staff, while the ABC Act will be amended to include the requirement that the public broadcaster’s news coverage is "fair and balanced". The support of the Nick Xenophon Team for the media bill will be crucial, given that the Greens have rejected the One Nation reforms.

CORPORATES
ONE NATION PARTY, AUSTRALIAN BROADCASTING CORPORATION, SPECIAL BROADCASTING SERVICE (SBS), NICK XENOPHON TEAM, AUSTRALIAN GREENS, AUSTRALIAN CONSERVATIVES, LIBERAL DEMOCRATIC PARTY, AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, FAIRFAX MEDIA LIMITED – ASX FXJ, TEN NETWORK HOLDINGS LIMITED – ASX TEN, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, MEDIA, ENTERTAINMENT AND ARTS ALLIANCE