Foxtel has announced its intentions to acquire Austar at a price of $1.52 per share in a condition proposal to the subscription TV service provider.
If successful, Foxtel will acquire all of the shares in Austar to create one of the largest media businesses in Australia.
“This is a logical transaction with significant consumer and industrial upside for all stakeholders,” Foxtel CEO, Kim Williams, said.
“If the merger were to go ahead, it is a win-win transaction that delivers value to Austar shareholders, synergies and growth opportunities for Foxtel, and increased services and choice for all consumers.”
A successful merger between the two Australian subscription TV service providers is expected to generate revenues of over $2.8 billion through a combined investment of more than $500 million per annum in original Australian programming.
A merged Foxtel/Austar has the potential to provide consumers in regional Australia with access to the same quality digital services that metropolitan customers are used to at the same time, as well as new digital subscriptions channels and products such as Foxtel on Xbox 360 and on T-box.
The deal could also mean a faster roll out of new digital products and services to existing and new customers.