Foxtel, Austar to merge

Oz pay TV companies seal $2.1 bil marriage

Aussie pay TV partners Foxtel and Austar have finally agreed the terms of a merger worth over $A2 billion ($2.1 billion).

The deal, which has taken several months to negotiate, aims to give the two companies — who have long been partners — better synergies and stronger subscriber growth. It also means the feevee business can turn its focus to battling the free-to-air webs, and their recently added suite of digital channels, which have taken the shine off the feevee market.

The deal prices Austar shares at $1.62 each; they were $1.37 at the close of trading Monday, before the merger was announced.

“A merged Foxtel and Austar would make compelling strategic sense, and it would continue to invest and innovate in a superb digital service for consumers across Australia, including investing heavily in marvellous new original Australian content,” Foxtel’s topper, Kim Williams, said in a statement.

Foxtel’s focus is on the major Aussie cities, while Austar services rural clients, and the merged entity hopes to save money on operational double-up, Austar has advised its shareholders to accept the deal.

Telco Telstra owns 50% of Foxtel, while Rupert Murdoch’s News Corp., and James Packer and Kerry Stoke’s Consolidated Media each have 25%.

More TV

  • 'The Bachelor' Recap: Arie Luyendyk Jr.

    'The Bachelor' Recap: Arie Luyendyk Jr. Faces 'The Bekah-ning'

    Aussie pay TV partners Foxtel and Austar have finally agreed the terms of a merger worth over $A2 billion ($2.1 billion). The deal, which has taken several months to negotiate, aims to give the two companies — who have long been partners — better synergies and stronger subscriber growth. It also means the feevee business […]

  • CBS Orders Pilots From Gloria Calderon

    CBS Orders Pilots From Gloria Calderon Kellett, Amanda Green, Michelle Nader

    Aussie pay TV partners Foxtel and Austar have finally agreed the terms of a merger worth over $A2 billion ($2.1 billion). The deal, which has taken several months to negotiate, aims to give the two companies — who have long been partners — better synergies and stronger subscriber growth. It also means the feevee business […]

  • NBC Orders FBI Drama 'The Enemy

    NBC Orders FBI Drama 'The Enemy Within' From 'Mentalist' Writer to Pilot

    Aussie pay TV partners Foxtel and Austar have finally agreed the terms of a merger worth over $A2 billion ($2.1 billion). The deal, which has taken several months to negotiate, aims to give the two companies — who have long been partners — better synergies and stronger subscriber growth. It also means the feevee business […]

  • Timeless

    TV News Roundup: 'Timeless' Sets Season 2 Premiere Date on NBC

    Aussie pay TV partners Foxtel and Austar have finally agreed the terms of a merger worth over $A2 billion ($2.1 billion). The deal, which has taken several months to negotiate, aims to give the two companies — who have long been partners — better synergies and stronger subscriber growth. It also means the feevee business […]

  • "The Matrimonial Metric" -- Pictured: Sheldon

    Delayed Viewing Ratings: 'Big Bang Theory' Winter Premiere Starts 2018 Strong

    Aussie pay TV partners Foxtel and Austar have finally agreed the terms of a merger worth over $A2 billion ($2.1 billion). The deal, which has taken several months to negotiate, aims to give the two companies — who have long been partners — better synergies and stronger subscriber growth. It also means the feevee business […]

  • Morgan Freeman and Peter Dinklage Bring

    PepsiCo's Super Bowl Commercial for Doritos, Mountain Dew is Two Ads in One

    Aussie pay TV partners Foxtel and Austar have finally agreed the terms of a merger worth over $A2 billion ($2.1 billion). The deal, which has taken several months to negotiate, aims to give the two companies — who have long been partners — better synergies and stronger subscriber growth. It also means the feevee business […]

  • What We Do in the Shadows

    'What We Do in The Shadows' Series Lands at FX With Pilot Production Commitment

    Aussie pay TV partners Foxtel and Austar have finally agreed the terms of a merger worth over $A2 billion ($2.1 billion). The deal, which has taken several months to negotiate, aims to give the two companies — who have long been partners — better synergies and stronger subscriber growth. It also means the feevee business […]

More From Our Brands

Access exclusive content