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Turnbull to open way for media mergers

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Original article by David Crowe
The Australian – Page: 7 : 2-Dec-15

Communications Minister Mitch Fifield has told a private meeting of Coalition MPs that he is keen to abolish the "reach rule" and the "two-out-of-three rule". The Federal Government may formally reveal its position on cross-media ownership reforms before the end of 2015, although with Parliament about to rise for the summer break any such changes will be on hold until 2016. The Opposition supports scrapping the reach rule, although it has not yet declared its stance on the two-out-of-three rule.

CORPORATES
AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, AUSTRALIAN LABOR PARTY, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, FAIRFAX MEDIA LIMITED – ASX FXJ, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, TEN NETWORK HOLDINGS LIMITED – ASX TEN, SOUTHERN CROSS AUSTEREO PTY LTD, SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, PRIME MEDIA GROUP LIMITED – ASX PRT

Dick Smith on defence as shares fall

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Original article by Sue Mitchell
The Australian Financial Review – Page: 13 & 18 : 1-Dec-15

Shares in Dick Smith Holdings closed 57 per cent lower at $A0.28 on 30 November 2015, after reaching an intra-day low of $A0.20. The sell-off was prompted by the household electronics retailer’s decision to write down the value of its inventory by 20 per cent. Some fund managers have questioned whether Dick Smith will remain solvent, but such concerns have been downplayed by the retailer. Dick Smith shares were issued at $A2.20 in 2013, providing a huge windfall for Anchorage Capital Partners.

CORPORATES
DICK SMITH HOLDINGS LIMITED – ASX DSH, ANCHORAGE CAPITAL PARTNERS PTY LTD, WOOLWORTHS LIMITED – ASX WOW, FORAGER FUNDS MANAGEMENT PTY LTD

Seven fends off Nine to win ratings again

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Original article by Michael Bodey
The Australian – Page: 23 & 25 : 30-Nov-15

The Seven Network was Australia’s top-rating TV network in 2015, with an overall audience share of 29.3 per cent. This compares with 30.4 per cent in 2014, while the Nine Network’s audience share also fell. However, the Ten Network’s audience share rose by 0.9 per cent to 18.8 per cent. Nine’s Andrew Backwell says the network is not concerned about total viewers, arguing that it was the market leader in the key age demographics in 2015.

CORPORATES
SEVEN NETWORK LIMITED, SEVEN WEST MEDIA LIMITED – ASX SWM, NINE NETWORK AUSTRALIA LIMITED, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, TEN NETWORK HOLDINGS LIMITED – ASX TEN, AUSTRALIAN BROADCASTING CORPORATION, SPECIAL BROADCASTING SERVICE (SBS), NETFLIX INCORPORATED, PRESTO ENTERTAINMENT PTY LTD, SMI MEDIA INCORPORATED, AUSTRALIAN FOOTBALL LEAGUE, NATIONAL RUGBY LEAGUE

Delay on rules for ownership

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Original article by Dominic White
The Australian Financial Review – Page: 30 : 30-Nov-15

Cabinet ministers may discuss proposed changes to cross-media ownership laws in the week after Parliament rises for the summer break, but any reforms will now not proceed until February 2016. Communications Minister Mitch Fifield had hoped to put the reforms to cabinet before the end of the parliamentary year. Meanwhile, Nine Entertainment Company CEO Hugh Marks argues that TV broadcasting licence fees must be included in the reforms, which are centred on the "reach rule" and the "two-out of-three rule".

CORPORATES
AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, BAUER MEDIA KG, NOVA ENTERTAINMENT PTY LTD, SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, COMCAST CORPORATION, SONY CORPORATION, TIME WARNER INCORPORATED, VIACOM INCORPORATED

League secures $1.8bn TV deal

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Original article by Darren DavidsonJake Mitchell
The Australian – Page: 21 : 27-Nov-15

The National Rugby League has finalised a revised five-year TV and digital broadcasting rights deal. News Corp Australia will pay $A1bn for pay-TV rights via its Fox Sports subsidiary. This includes about $A35m per year for Saturday night matches that were initially awarded to Nine Entertainment Company earlier in 2015. Nine in turn will pay $A625m over five years for free-to-air broadcasting rights, while Telstra has secured digital subscription rights for $A175m.

CORPORATES
NATIONAL RUGBY LEAGUENEWS CORP AUSTRALIA PTY LTDNEWS CORPORATION – ASX NWSFOX SPORTS AUSTRALIA PTY LTDNINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NECTELSTRA CORPORATION LIMITED – ASX TLSSINGTEL OPTUS PTY LTDAUSTRALIAN FOOTBALL LEAGUEENGLISH PREMIER LEAGUE

Woolies to decide fate of Masters in new year

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Original article by Catie Low
The Australian Financial Review – Page: 13 & 18 : 27-Nov-15

Woolworths chairman Gordon Cairns has conceded that the retailer must take action on its Masters joint venture, conceding that annual losses of $A200m are not sustainable. However, he says Woolworths will wait until a five-year strategic plan for Masters is finalised in 2016 before deciding on its future. Cairns remains convinced that the Australian home improvement market can support a rival to Bunnings. He has also indicated that Woolworths is unlikely to sell its Big W department store chain.

CORPORATES
WOOLWORTHS LIMITED – ASX WOWMASTERS HOME IMPROVEMENT AUSTRALIA PTY LTDBIG W DISCOUNT STORESLOWE’S COMPANIES INCORPORATEDBUNNINGS GROUP LIMITED

Woolies shareholders look for green shoots

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Original article by Sue Mitchell
The Australian Financial Review – Page: 21 : 26-Nov-15

Woolworths’ strategy to turn around the performance of its supermarkets division is likely to come under scrutiny at its AGM on 26 November 2015. Some shareholders do not expect any real improvement in the business for another 6-12 months, following Woolworths’ move to reduce grocery prices and ramp up investment in its supermarkets. The future of assets such as the Masters and Big W businesses are also likely to be a key focus for investors.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, BIG W DISCOUNT STORES, LUMINIS PARTNERS PTY LTD, DICK SMITH HOLDINGS LIMITED – ASX DSH, ANCHORAGE CAPITAL PARTNERS PTY LTD, BEST AND LESS PTY LTD, NBN CO LIMITED

Shareholders to vote on Foxtel

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Original article by Jake Mitchell, Darren Davidson
The Australian – Page: 21 : 26-Nov-15

Ten Network’s shares closed at $A0.16 on 25 November 2015. However, Morgan Stanley has upgraded its share price target to $A0.29, describing the network as a "early stage turnaround story". Meanwhile, Foxtel has emerged with a 12.5 per cent stake in Ten following a rights issue. Some 50 per cent of Ten’s shareholders will have to approve the issuance of a further 56.8 million shares to the pay-TV group in order to lift its stake to 14.9 per cent.

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, FOXTEL MANAGEMENT PTY LTD, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, TELSTRA CORPORATION LIMITED – ASX TLS, MORGAN STANLEY AUSTRALIA LIMITED

Fairfax investor Waislitz backs cuts

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Original article by Damon Kitney
The Australian – Page: 23 : 25-Nov-15

Media reports have suggested that News Corp Australia intends to retrench 55 journalists, while there is speculation that further job cuts are planned at Fairfax Media. Businessman Alex Waislitz does not expect the quality of journalism to be affected by the job cuts, and he argues that it is essential for companies in "sunset industries" to reduce costs in order to survive. Waislitz holds around two per cent of Fairfax’s shares via Thorney Investment Group and Thorney Opportunities Limited.

CORPORATES
FAIRFAX MEDIA LIMITED – ASX FXJ, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, THORNEY INVESTMENT GROUP AUSTRALIA PTY LTD, THORNEY OPPORTUNITIES LIMITED – ASX TOP, DOMAIN.COM.AU, IANGELS

Gerry Harvey faces possible strike and spill

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Original article by Sue Mitchell
The Australian Financial Review – Page: 9 : 24-Nov-15

The "two strikes" rule could be invoked at the 2015 annual meeting of retailer Harvey Norman, after more than 25 per cent of shareholders voted against its remuneration report in 2014. Executive chairman Gerry Harvey argues that the group’s executives are paid less than the bulk of companies that are of a comparable size. Harvey and the family of late co-founder Ian Norman have sufficient voting power to thwart a board spill if they choose to do so. Harvey traditionally does not vote on the remuneration report.

CORPORATES
HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION