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TEN lashes out at Southern Cross Media

Ahead of an expected merger between Nine and Southern Cross Media, TEN takes aim at its own affiliate partner.

hamish_mclennanWith the looming media reforms set to face Parliament, criticism of the government’s plans continue.

Media organisations are lining up one after another to shoot down Senator Conroy’s reforms, which he has signalled are not for compromise.

You can read several of those here.

Today Network TEN has lashed out at its current affiliate partner Southern Cross Media by claiming it never disclosed to the Australian Securities Exchange that it was in talks with Nine.

Hamish McLennan, incoming Chief Executive Officer, said in a statement, “The Government’s determination to rush through the removal of the 75% audience reach rule is staggering.

“All Australians have the right to know what whispers have taken place over the back fence, and what conversations have been had with the Minister for Broadband, Communications and the Digital Economy, Senator Stephen Conroy.

“On March 4 this year, a statement issued by Southern Cross Media said it was ‘reviewing a number of strategic options’ and ‘the board has not, at this stage, formed a view as to any preferred option’.

“It is now obvious to everyone that Southern Cross Media’s intention is to merge with Nine Entertainment Co.

“But Southern Cross Media remains silent. Its shareholders have a right to know if the company’s directors are meeting their continuous disclosure obligations. Its shareholders have a right to know how detailed and advanced the discussions between Nine and Southern Cross Media are, and what has been discussed with the Government.”

A merger with Nine will depend on the relaxing of the current 75% reach rule, which Conroy has sent to a committee for decision in a matter of days. Another move that has been widely criticised…

9 Responses

  1. Smacca, Southern Cross Seven murder WIN in Tasmanian ratings (even ABC kill them half the time), so would SCA want to drop Seven for Nine there? Not sure what the ratings are like in Darwin & Central Australia because Monday’s edition of The Australian doesn’t publish them.

    JoshS, don’t forget SCA will be doubling their costs too.

  2. I’d like to know what Southern Cross/Nine would do with their Seven affiliated stations in Darwin, Tasmania, SA and Central Australia. If they’re included in this merger and change to Nine affiliation as a result, then the potential reach for SC/Nine would be massive. Basically every state, territory and island in Australia except WA and half of SA.

  3. Agreeing to a merger that is illegal is rather problematical.

    Southern Cross will probably become an Nine affiliate replacing WIN. Then, if the media laws are changed, Nine would “merge” with Southern Cross. This allows the Nine owners to list Nine and get out without an IPO. It would also give Nine direct control of their business in the South of the state (they already own NBN in the North).

  4. from what i hear, and of course its all just chinese whispers, the Southern Cross / 9 merger is done deal…meaning eventually regionally Sth X will be branded as just 9… which i think 9 have always wanted…go back to when Bruce dropped the dots… now the question is do WIN affilate totally with TEN…or just take their news or do something else….

  5. Everything being discussed this week/next week has been out there for years. A full report is at
    academia.edu/1052414/ARC_Centre_of_Excellence_for_Creative_Industries_and_Innovation_Third_Submission_to_Convergence_Review_October_2011
    Or perhaps – “Conroy Signals Shake-up in TV Ownership Rules” (Sydney Morning Herald” 2 April 2010
    How much more time does anyone need to “debate” it? Surely anyone vaguely interested has made a decision by now. If the networks didn’t know then why have they been lobbying Canberra for years? But Hamish has been in New York hasn’t he.
    Can understand why he’s screaming. TEN would be the loser here. TEN loses their affiliate. WIN is the only alternative, but Bruce Gordon would dictate the terms, or would go it alone. Then, he’s TEN’s biggest shareholder so WIN may just buy TEN. We live in interesting times, Clarice.

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