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Bid to break media deadlock

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Original article by Rosie Lewis
The Australian – Page: 5 : 5-Jul-17

Abolition of the "two-out-of-three" rule remains a major stumbling block for the Federal Government’s cross-media ownership reforms. However, Senator Nick Xenophon says the key issue is the need to ensure that diversity of media voices is increased and the industry creates and retains more jobs for journalists. The Nick Xenophon Team will propose a range of measures aimed at safeguarding media diversity, in a bid to resolve the impasse in the Senate.

CORPORATES
NICK XENOPHON TEAM, AUSTRALIAN GREENS, AUSTRALIAN LABOR PARTY, ONE NATION PARTY, AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, GOOGLE INCORPORATED, FACEBOOK INCORPORATED

Fairfax dives as suitors vanish

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Original article by Andrew White
The Australian – Page: 17 & 28 : 4-Jul-17

Fairfax Media has advised that its 2016-17 EBITDA will be within the range of $A262m to $A266m, compared with $A283.3m previously. Group revenue will be six per cent lower, although the Domain property listings business has posted revenue growth of 10 per cent. Fairfax shares fell sharply on 3 July after the media group ended talks with private equity suitors TPG Capital and Hellman & Friedman. Fairfax will now proceed with the demerger of Domain before the end of 2017, although it will retain a majority stake.

CORPORATES
FAIRFAX MEDIA LIMITED – ASX FXJ, DOMAIN.COM.AU, TPG CAPITAL LP, HELLMAN AND FRIEDMAN, STAN ENTERTAINMENT PTY LTD, MACQUARIE MEDIA LIMITED – ASX MRN, ONTARIO TEACHERS’ PENSION PLAN, CCZ STATTON EQUITIES PTY LTD, CITIGROUP PTY LTD, REA GROUP LIMITED – ASX REA, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS

Cricket rights set for delay amid pay war

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Original article by Nick Tabakoff
The Australian – Page: 24 : 3-Jul-17

Negotiations for a new cricket broadcasting rights deal are expected to be put on hold until 2018. Cricket Australia had commenced preliminary talks with TV networks, but factors such as the pay dispute with top cricketers and the collapse of the Ten Network may prompt a final deal to be delayed. Cricket Australia had been aiming to gain around $A900m for the next five-year rights deal, compared with about $A600m under the current deal. However, sports rights experts say Ten’s collapse means that around $A700m is more likely.

CORPORATES
CRICKET AUSTRALIA, TEN NETWORK HOLDINGS LIMITED – ASX TEN, SEVEN WEST MEDIA LIMITED – ASX SWM, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, BIG BASH LEAGUE, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, PPB ADVISORY, KORDA MENTHA AND COLLEAGUES PTY LTD, FEDERAL COURT OF AUSTRALIA, TENNIS AUSTRALIA

Private equity walks away from Fairfax

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Original article by Max Mason, Anthony Macdonald
The Australian Financial Review – Page: 1 & 2 : 3-Jul-17

TPG Capital will not proceed with a $A2.7bn bid for Fairfax Media after undertaking due diligence. Rival private equity suitor Hellman & Friedman had not submitted a binding bid by the deadline of 30 June, and Fairfax CEO Greg Hywood has indicated that the media group will now press ahead with its proposal to spin off the Domain property listings business. Thorney Investment Group chairman Alex Waislitz supports the demerger plan, and he has previously forecast that Domain’s EBITDA could rise from around $A115m at present to at least $A200m in the future.

CORPORATES
FAIRFAX MEDIA LIMITED – ASX FXJ, TPG CAPITAL LP, HELLMAN AND FRIEDMAN, DOMAIN.COM.AU, THORNEY INVESTMENT GROUP AUSTRALIA PTY LTD, MACQUARIE MEDIA LIMITED – ASX MRN, STAN ENTERTAINMENT PTY LTD, AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS

Licence fee win boosts TV, radio

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Original article by Stephen Brook
The Australian – Page: 19 : 29-Jun-17

Free TV chairman Harold Mitchell and Commercial Radio Australia CEO Joan Warner have welcomed the Federal Government’s decision to waive broadcasting licence fees for the 2016-17 financial year. The Government proposes to permanently replace broadcasting licence fees with a spectrum charge as part of its media cross-ownership reforms. Shares in listed media companies rallied after the one-off waiver was announced. It is expected to save broadcasters about $A127m.

CORPORATES
FREE TV AUSTRALIA LIMITED, COMMERCIAL RADIO AUSTRALIA LIMITED, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, SEVEN WEST MEDIA LIMITED – ASX SWM, AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, ONE NATION PARTY

New chief postie to get half the pay of her predecessor

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Original article by Glenda Korporaal
The Australian – Page: 4 : 28-Jun-17

Australia Post’s incoming CEO Christine Holgate will receive a base salary of $A1.375m when she takes the helm in October. She will also be entitled to performance bonuses, although her remuneration will be well below that of current CEO Ahmed Fahour. Holgate’s salary as CEO of Blackmores is around $A3m, and she says the issue of pay had not been raised in her discussions with Australia Post’s board. Chairman John Stanhope says Holgate was the "outstanding candidate" among those considered for the role.

CORPORATES
AUSTRALIA POST, BLACKMORES LIMITED – ASX BKL, TELSTRA CORPORATION LIMITED – ASX TLS, COLLINGWOOD FOOTBALL CLUB, AUSTRALIAN FOOTBALL LEAGUE

Media rules ‘utterly outdated’

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Original article by Rosie Lewis
The Australian – Page: 2 : 28-Jun-17

The support of the Greens or One Nation will be crucial to the passage of the Australian Government’s media cross-ownership laws in the Senate, but both parties have concerns about the impact on media diversity. However, Prime Minister Malcolm Turnbull argues that Google and Facebook are the main competitive threat to local media groups, rather than each other. He notes that the existing media laws pre-date the internet and pay-TV.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN GREENS, ONE NATION PARTY, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, NICK XENOPHON TEAM, TEN NETWORK HOLDINGS LIMITED – ASX TEN

Murdoch and Gordon may face multiple rivals for control of Ten

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Original article by Max Mason
The Australian Financial Review – Page: 3 : 27-Jun-17

There is speculation that the Commonwealth Bank could seek to have Ten Network placed in receivership in coming days. Meanwhile, Ten’s administrator Mark Korda has told the first creditors’ meeting that several local and offshore parties have expressed interest in buying or recapitalising Ten. CBS has been suggested as a possible buyer of Ten. Lachlan Murdoch and Bruce Gordon have been touted as likely buyers, but could not do so under existing media cross-ownership rules.

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, KORDA MENTHA AND COLLEAGUES PTY LTD, CBS CORPORATION, ANCHORAGE CAPITAL PARTNERS PTY LTD, 21ST CENTURY FOX INCORPORATED, ENDEMOL SHINE AUSTRALIA PTY LTD, FREMANTLEMEDIA AUSTRALIA PTY LTD, METROWEATHER, STARCOM AUSTRALIA PTY LTD, CRICKET AUSTRALIA

Ten chairman sold down stake

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Original article by Darren Davidson
The Australian – Page: 23 : 26-Jun-17

Ten Network chairman David Gordon is likely to come under scrutiny amid revelations that he reduced his stake in the TV broadcaster from 247,500 shares in 2015 to 29,433 in 2016. Ten’s administrator KordaMentha is also under scrutiny over its relationship as an adviser to Ten in the months prior to its collapse. Meanwhile, Ten had advised in early 2017 of a 5.6 per cent downturn in the metropolitan advertising market, only two months after issuing an earnings downgrade. It is uncertain whether Ten’s board undertook modelling at this time on the potential impact on cashflow if the advertising market deteriorated further.

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, KORDA MENTHA AND COLLEAGUES PTY LTD, NEWS CORPORATION – ASX NWS, WIN CORPORATION PTY LTD, FOXTEL MANAGEMENT PTY LTD, BIRKETU PTY LTD, TELSTRA CORPORATION LIMITED – ASX TLS, ILLYRIA PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN RESTRUCTURING INSOLVENCY AND TURNAROUND ASSOCIATION, GILBERT AND TOBIN LAWYERS, DESTRA CORPORATION LIMITED, FORT STREET ADVISERS PTY LTD, ALLEN AND OVERY

Media bill set to be left in the cold

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Original article by Rosie Lewis
The Australian – Page: 4 : 23-Jun-17

Independent senator Nick Xenophon wants an impasse over cross-media ownership reforms to be resolved during Parliament’s winter break. The media bill has been sidelined, with the Federal Government focusing on passing its schools funding package. The Nick Xenophon Team will press for safeguards to ensure media diversity if the "two-out-of-three" rule is abolished. The media industry has backed the reforms, but one TV industry source has warned that this will not be the case if the Government seeks to split the bill.

CORPORATES
NICK XENOPHON TEAM, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, TEN NETWORK HOLDINGS LIMITED – ASX TEN, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS