MASS MEDIA – AUSTRALIA

Rinehart eyes Fairfax takeover

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Original article by Sharri Markson
The Australian – Page: 23 : 21-Jul-14

Australian mining heiress Gina Rinehart is a major stockholder in the struggling Fairfax Media newspaper publishing group. She owns 14.99% via her Hancock Prospecting business, but has been rebuffed in efforts to also gain a board position. Insiders claim that she may be contemplating a move to above 20% and possibly a complete takeover, in order to secure control over how the company is run. Newly installed directors would then remove current chair Roger Corbett and CEO Greg Hywood. Ex-Victorian premier Jeff Kennett says he has been asked by Rinehart whether he would serve on the board, but declined

CORPORATES
FAIRFAX MEDIA LIMITED – ASX FXJ, HANCOCK PROSPECTING PTY LTD, DOMAIN.COM.AU, ALLAN GRAY AUSTRALIA PTY LTD, BEYOND BLUE LIMITED

Ten in play as US giants move in

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Original article by Darren Davidson
The Australian – Page: 19 : 21-Jul-14

US-based media groups such as Liberty, Viacom and Discovery have been acquiring businesses in the broadcasting sector in Europe. The interest is forecast to extend to Australia, where an obvious target is third-ranked free-to-air TV provider Ten Network. CEO Hamish McLennan acknowledges the foreign investment trend. However he is not revealing anything about recent rumours that UK-based ITV, itself a target of Liberty, has held talks with Ten. Meanwhile McLennan notes that the move by Ten to reduce its news coverage has lifted its audience ratings

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, SEVEN WEST MEDIA LIMITED – ASX SWM, ITV PLC, ITV NETWORK LIMITED, LIBERTY GLOBAL INCORPORATED, DISCOVERY COMMUNICATIONS INCORPORATED, VIACOM INCORPORATED, CHANNEL 5 BROADCASTING LIMITED, EUROSTAT, NETFLIX INCORPORATED, BRITISH SKY BROADCASTING GROUP PLC, SKY DEUTSCHLAND AG, SKY ITALIA SPA

CFO Lewis ‘not right fit’ for Southern Cross

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Original article by Jake Mitchell
The Australian Financial Review – Page: 15 : 18-Jul-14

Peter Lewis has stepped down as CFO of Australian-listed Southern Cross Media. He only joined the company in mid-June 2014, and CEO Rhys Holleran says Lewis had indicated that he did think he was the "right fit" for the media group. Holleran notes that Southern Cross is very different to the companies for which Lewis has worked in the past, which include Seven West Media

CORPORATES
SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, SEVEN WEST MEDIA LIMITED – ASX SWM, AUSTRALIAN BROADCASTING CORPORATION, TEN NETWORK HOLDINGS LIMITED – ASX TEN, ALLAN GRAY AUSTRALIA PTY LTD

Southern Cross in trouble as new CFO quits

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Original article by Darren Davidson
The Australian – Page: 19 : 17-Jul-14

Analysts are concerned Australian-listed Southern Cross Media (SXL) may soon breach its banking covenants. Peter Lewis, who was appointed CFO in mid-June, has resigned just one month later, and the company is believed to be considering a share issue. Its stock on 16 July closed $A0.01 higher at $A1.16, but has lost 31% so far in calendar 2014. There is speculation that if Communications Minister Malcolm Turnbull changes media competition laws, SXL will cut its affiliate ties with Ten Network and merge with the latter’s Nine Entertainment rival. SXL has been affected by declining audience ratings for its and radio and regional TV stations

CORPORATES
SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, TEN NETWORK HOLDINGS LIMITED – ASX TEN, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, SEVEN WEST MEDIA LIMITED – ASX SWM, 2DAY FM AUSTRALIA PTY LTD, AUSTEREO GROUP LIMITED, AUSTRALIAN BROADCASTING CORPORATION, SPECIAL BROADCASTING SERVICE (SBS), AUSTRALIA. DEPT OF COMMUNICATIONS, WIN CORPORATION PTY LTD, FAIRFAX MEDIA LIMITED – ASX FXJ, FACEBOOK AUSTRALIA PTY LTD, MACQUARIE WEALTH MANAGEMENT

Generational shift may end print: Murdoch

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Original article by Jake Mitchell
The Australian Financial Review – Page: 31 : 14-Jul-14

The co-chair of News Corporation, Rupert Murdoch, has commented on the future of print media in Australia. He was interviewed by Paul Kelly, editor at large at newspaper "The Australian". Murdoch, who had set up the new publication in 1964, said he was not certain that it would still exist in a format other than the digital version when it turns 70. He noted that younger readers prefer online newspapers, and that these also offer the opportunity to embed video content. Murdoch added that "The Australian" had often struggled to make a profit

CORPORATES
NEWS CORPORATION – ASX NWS, NEWS CORP AUSTRALIA PTY LTD, LIBERAL PARTY OF AUSTRALIA

SBS on a roll with Tour de France cycling and World Cup

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Original article by John Stensholt
The Australian Financial Review – Page: 42 : 7-Jul-14

The 2014 Tour de France cycling event is expected to generate good TV audience ratings for public broadcaster SBS in Australia. It has boosted the number of sponsors by one to five, and they are Skoda, QBE Insurance, Colonial First State, Optus TV/FetchTV and Scenic Tours. For the first of the three weeks, SBS will also still show live matches from the soccer World Cup in Brazil. In cycling news, major sponsor Orica has voiced its confidence in the Australian GreenEDGE team competing in the Tour de France, after rider Daryl Impey returned a positive drug test

CORPORATES
SPECIAL BROADCASTING SERVICE (SBS), ORICA LIMITED – ASX ORI, GREENEDGE CYCLING PTY LTD, SKODA AUTOMOBILOVA AS, QBE INSURANCE GROUP LIMITED – ASX QBE, COLONIAL FIRST STATE GROUP LIMITED, COLONIAL HOLDING COMPANY LIMITED – ASX CNG, SINGAPORE TELECOMMUNICATIONS LIMITED – ASX SGT, SINGTEL OPTUS PTY LTD, FETCHTV PTY LTD, SCENIC TOURS PTY LTD

Hywood defends strategy amid online disruption

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Original article by Stefanie Balogh
The Australian – Page: 23 : 2-Jul-14

The audience at an event staged at the Australian National University by Fairfax Media’s "The Australian Financial Review" on 1 July 2014 heard from Greg Hywood. The Fairfax CEO argued that the recent closing of newspaper printing plants in Melbourne and Sydney was an example of positive digital disruption, as more readers can now be reached via smartphone apps and web pages with the same content at a fraction of the capital cost. Hywood says the move had effectively saved Fairfax $A599.2m. The outlook for its long-term debt rating of "BB+" has also been lifted by credit ratings agency Standard & Poor’s, from "negative" to "stable"

CORPORATES
FAIRFAX MEDIA LIMITED – ASX FXJ, STANDARD AND POOR’S (AUSTRALIA) PTY LTD, AUSTRALIAN NATIONAL UNIVERSITY

‘Credible strategy’ lifts Fairfax credit rating outlook

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Original article by Madeleine Heffernan
The Australian Financial Review – Page: 21 : 1-Jul-14

Standard & Poor’s has revised the credit rating outlook for Fairfax Media’s "BB+" long-term rating from "negative" to "stable". The ratings agency stated on 30 June 2014 that the media company had developed a "credible" strategy for its earnings over the medium term. The stock closed at $A0.9275 on 30 June 2014. Since the beginning of 2014, it has risen 44.5 per cent

CORPORATES
FAIRFAX MEDIA LIMITED – ASX FXJ, STANDARD AND POOR’S CORPORATION, CREDIT SUISSE AG, 3AW SOUTHERN CROSS RADIO PTY LTD, RSVP.COM.AU PTY LTD, GANNETT COMPANY INCORPORATED

How will Lachlan Murdoch and James Packer react to Ten bid?

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Original article by James Thomson
The Australian Financial Review – Page: 20 : 24-Jun-14

US-based Providence Equity Partners is said to be preparing for a possible takeover of Australian-listed free-to-air TV group Ten Network. The reactions to such a bid by the four main stockholders will vary. Lachlan Murdoch and James Packer have suffered substantial losses on their investments in the company, and may be content to depart despite having to sell at about $A0.245 a share when they had bought in at $A1.50. Equally relieved to exit may be mining heiress Gina Rinehart, whose limited media sector exposure also includes Fairfax Media. The most likely to keep the faith that Ten will be turned around is TV industry stalwart Bruce Gordon, who owns 15%

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, FAIRFAX MEDIA LIMITED – ASX FXJ, PROVIDENCE EQUITY PARTNERS INCORPORATED, ITV PLC, ITV NETWORK LIMITED, NEWS CORPORATION – ASX NWS, WIN TELEVISION PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN BROADCASTING CORPORATION, SPECIAL BROADCASTING SERVICE (SBS)

Ten falls on weak outlook

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Original article by Vanessa Desloires, Tom Cowie
The Australian Financial Review – Page: 16 : 20-Jun-14

Australian-listed TV broadcaster Ten Network has advised that its 2013-14 revenue will be between 3.5 per cent and 4.5 per cent lower than previously. COO Paul Anderson has noted the difficult conditions in the TV advertising market and the low ratings for many of the network’s programs earlier in 2014. The group’s shares closed 6.9 per cent lower at $A0.27 on 19 June

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN