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Formal bids for Fairfax due in next fortnight with Domain the target

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Original article by Max Mason
The Australian Financial Review – Page: 15 : 19-Jun-17

Hellman & Friedman and TPG Capital may seek more time to undertake due diligence on Fairfax Media, although they may submit formal bids by the end of June. Fairfax has also advised that businessmen John Singleton and Mark Carnegie have expressed interest in acquiring its controlling stake in radio stations owner Macquarie Media. They had previously made an approach to buy Fairfax’s radio assets in 2012.

CORPORATES
FAIRFAX MEDIA LIMITED – ASX FXJ, HELLMAN AND FRIEDMAN, TPG CAPITAL LP, MACQUARIE MEDIA LIMITED – ASX MRN, 2GB, 3AW SOUTHERN CROSS RADIO PTY LTD, DOMAIN.COM.AU, CREDIT SUISSE (AUSTRALIA) LIMITED, GILBERT AND TOBIN LAWYERS, MACQUARIE CAPITAL PTY LTD, HERBERT SMITH FREEHILLS PTY LTD, KING AND WOOD MALLESONS, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, STAN ENTERTAINMENT PTY LTD

Telstra to maintain Foxtel content

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Original article by Damon Kitney
The Australian – Page: 23 & 25 : 19-Jun-17

Some 748,000 Telstra customers now subscribe to Foxtel via the telco, and 75 per cent of its media revenue is generated by reselling the pay-TV service. Telstra chairman John Mullen says the telco is "very committed" to Foxtel, in which it has a 50 per cent stake, and he has stressed the importance of having access to Foxtel content. Meanwhile, Foxtel is set to directly compete with Telstra TV with the looming launch of a rival "puck" video streaming device.

CORPORATES
TELSTRA CORPORATION LIMITED – ASX TLS, FOXTEL MANAGEMENT PTY LTD, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, FOX SPORTS AUSTRALIA PTY LTD, PRESTO ENTERTAINMENT PTY LTD, SEVEN WEST MEDIA LIMITED – ASX SWM, NETFLIX INCORPORATED, STAN ENTERTAINMENT PTY LTD, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, FAIRFAX MEDIA LIMITED – ASX FXJ, ROKU INCORPORATED

KordaMentha’s Ten role raises conflict issues

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Original article by Damon Kitney
The Australian – Page: 18 : 19-Jun-17

The appointment of Korda­Mentha as administrator of Ten Network is under scrutiny, as the insolvency firm has been acting as an adviser to the free-to-air broadcaster since early 2017. This may breach rules which prohibit an insolvency practitioner from becoming administrator to a company they have had a professional relationship with in the previous two years. The issue is expected to be examined by the Australian Restructuring Insolvency & Turnaround Association.

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, KORDA MENTHA AND COLLEAGUES PTY LTD, AUSTRALIAN RESTRUCTURING INSOLVENCY AND TURNAROUND ASSOCIATION, CBS CORPORATION, 21ST CENTURY FOX INCORPORATED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Officeworks ready to take on Amazon

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Original article by Sue Mitchell
The Australian Financial Review – Page: 15 : 16-Jun-17

Officeworks is diversifying away from its traditional office products market as it prepares for Amazon’s arrival in Australia. MD Mark Ward says the areas that it is looking to expand into include parcel delivery, art supplies and business processing, and that the value of the current and potential markets that it is looking to operate in is around $A55 billion. Ward says he was "not disappointed" by parent company Wesfarmers’ decision not to proceed with an initial public offering for Officeworks.

CORPORATES
OFFICEWORKS SUPERSTORES PTY LTD, AMAZON.COM INCORPORATED, WESFARMERS LIMITED – ASX WES, AUSTRALIA POST, STARTRACK COMMUNICATIONS (AUSTRALIA) PTY LTD, COLES GROUP LIMITED, MOULA PTY LTD, STAPLES INCORPORATED, OFFICE DEPOT INCORPORATED

Murdoch, Gordon in Ten deal

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Original article by Mitchell Bingemann, Darren Davidson
The Australian – Page: 17 & 27 : 15-Jun-17

Communications Minister Mitch Fifield says the Ten Network’s descent into voluntary administration has demonstrated the need for cross-media ownership reforms. Meanwhile, the struggling free-to-air broadcaster could potentially be privatised after shareholders Lachlan Murdoch and Bruce Gordon joined forces to develop a plan to refinance Ten. Their combined stake in Ten exceeds 22 per cent, but the joint venture arrangement does not breach media ownership or takeover laws.

CORPORATES
TEN REN TEA (AUSTRALIA) PTY LTD, AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, NEWS CORPORATION – ASX NWS, WIN CORPORATION PTY LTD, FOXTEL MANAGEMENT PTY LTD, AUSTRALIAN LABOR PARTY, GOOGLE INCORPORATED, FACEBOOK INCORPORATED, KORDA MENTHA AND COLLEAGUES PTY LTD, 21ST CENTURY FOX INCORPORATED, CBS CORPORATION, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Crossbenchers threaten blockade on media bill

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Original article by Rosie Lewis, Joe Kelly
The Australian – Page: 4 : 15-Jun-17

The Australian Government requires the support of at least 10 Senate crossbenchers for its cross-media ownership reform bill, which will be introduced to Parliament in coming days. Gaining the support of the Nick Xenophon Team will be crucial, given that One Nation has reiterated its opposition to abolition of the "two-out-of-three" rule. The Australian Labor Party also opposes scrapping this rule, while the Greens’ Scott Ludlam has warned that the proposed reforms will reduce media diversity.

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

Ten board mulls putting network into administrator’s hands

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Original article by Max Mason
The Australian Financial Review – Page: 1 & 18 : 14-Jun-17

Ten Network’s shares went into a trading halt on 13 June 2017, pending a board meeting to discuss the free-to-air broadcaster’s future after three key shareholders elected not to guarantee a new loan facility. KordaMentha is expected to be appointed as administrator following the decision by Lachlan Murdoch, Bruce Gordon and James Packer, who had guaranteed the current $A200m loan facility that expires in late 2017. Murdoch and Gordon have been touted as potential bidders for Ten if cross-media ownership laws are relaxed.

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, KORDA MENTHA AND COLLEAGUES PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MOELIS AND COMPANY, CBS CORPORATION, 21ST CENTURY FOX INCORPORATED, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, FOXTEL MANAGEMENT PTY LTD, TELSTRA CORPORATION LIMITED – ASX TLS, WIN CORPORATION PTY LTD

Keeping Ten afloat relies on new deals

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Original article by Max Mason
The Australian Financial Review – Page: 11 & 16 : 13-Jun-17

Moelis & Company is said to be confident of securing a new $A250m financing deal for Ten Network after Bruce Gordon, James Packer and Lachlan Murdoch chose not to back it. They had guaranteed the network’s existing $A200m loan facility, which expires in late 2017. Murdoch and Gordon are seen as potential buyers of Ten if it goes into receivership, although they would require changes to cross-media ownership laws. Meanwhile, Ten is seeking to reduce costs by renegotiating US content deals with CBS and 21st Century Fox, which are worth about $A150m a year.

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, CBS CORPORATION, 21ST CENTURY FOX INCORPORATED, MOELIS AND COMPANY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NEWS CORPORATION – ASX NWS, FOXTEL MANAGEMENT PTY LTD, TELSTRA CORPORATION LIMITED – ASX TLS, STAN ENTERTAINMENT PTY LTD, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, FAIRFAX MEDIA LIMITED – ASX FXJ, NETFLIX INCORPORATED, UBS HOLDINGS PTY LTD, WIN CORPORATION PTY LTD, LAZARD ASSET MANAGEMENT PACIFIC COMPANY

GetUp! to pay for journalist’s tax expose

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Original article by Darren Davidson
The Australian – Page: 5 : 9-Jun-17

It has been revealed that activist group GetUp is helping to finance an investigation by journalist Michael West into alleged tax avoidance by large multinationals. GetUp’s deputy chair Carla McGrath was recently appointed to the Australia Press Council’s board, a decision that has caused some controversy and prompted News Corp’s newspapers to boycott any Council hearings in which she participates. Concerns have been raised that McGrath may be involved in hearing complaints against companies that West is investigating.

CORPORATES
GETUP LIMITED, AUSTRALIAN PRESS COUNCIL, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, FAIRFAX MEDIA LIMITED – ASX FXJ, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, ESSENTIAL MEDIA COMMUNICATIONS PTY LTD, UNIVERSITY OF TECHNOLOGY, SYDNEY

Activist’s press role a bad call, says ALP

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Original article by Darren Davidson
The Australian – Page: 3 : 8-Jun-17

The Australian Press Council is facing growing scrutiny over the appointment of GetUp’s deputy chair Carla McGrath to its board. Shadow communications minister Michelle Rowland says confidence in the APC may be undermined by the appointment of a senior member of the political activist group, and she has stressed the need for the APC to ensure that it avoids any conflicts of interest. Opposition Leader Bill Shorten is a former director of Getup.

CORPORATES
AUSTRALIAN PRESS COUNCIL, GETUP LIMITED, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, MEDIA, ENTERTAINMENT AND ARTS ALLIANCE, FAIRFAX MEDIA LIMITED – ASX FXJ, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS