The consumer watchdog has launched an investigation into the proposal to merge Foxtel and Fox Sports Australia into a single company majority owned by News Corp.
Fox Sports is completely owned by Rupert Murdoch’s News Corp, while Telstra and Foxtel currently share ownership of Foxtel 50-50.
Fox Sports is completely owned by Rupert Murdoch’s News Corp, while Telstra and Foxtel currently share ownership of Foxtel 50-50. Photo: Virginia Star
Under the previously announced merger plans, which aim to be completed in the first half of 2018, News Corp will have 65 per cent and Telstra 35 per cent of the new company, which could be listed on the ASX.
The Australian Competition and Consumer Commission commenced its review on Thursday, and urged interested parties to make submissions by October 27.
Its investigation will look at the impact of the merger on competition, particularly the acquisition and supply of sports content and the supply of broadband and telecommunication services to consumers.
In announcing the proposed merger in August, News Corp chief executive Robert Thomson said the world of content was becoming “more complicated and competitive” and noted the importance of Australia having a “strong local platform” for its sports and homegrown shows.
The ACCC will announce its decision on December 7.