The ACCC has today decided not to oppose Seven Network (a subsidiary of Seven West Media ASX: SWM), and Nine Network (a subsidiary of Nine Entertainment Co Holdings (ASX:NEC)) acquiring Network Ten’s stake in joint venture TX Australia (TXA).
TXA provides transmission services in Adelaide, Brisbane, Melbourne, Perth and Sydney. Transmission services are essential for television broadcasters to reach viewers and require access to transmission towers and electronic transmission equipment.
TXA and Broadcast Australia are the main providers of digital television (DTV) transmission services in metropolitan Adelaide, Brisbane, Melbourne, Perth and Sydney.
“The ACCC has carefully analysed the potential of this proposed acquisition to disrupt Ten’s access to transmission services and affect competition for television content or advertising,” ACCC Chairman Rod Sims said.
“After consulting industry players, we consider that Broadcast Australia, which currently provides transmission services to the ABC and SBS, is a viable alternative provider of transmission services for Ten. We therefore consider it unlikely that the acquisition would substantially lessen competition in the content or advertising markets,” Mr Sims said.
Further information is available at Seven & Nine – proposed acquisition of Ten’s shares in TX Australia.