The conservative-leaning Liberal government is set to scrap laws restricting foreign ownership of Australian media and relax laws on cross-media ownership. Currently, foreigners may not own more than 15% of terrestrial TV, 20% of pay-TV services or 25% of newspapers.
The present laws also prevent owners of TV stations from buying newspapers in the same region.
Stocks benefiting from the news included broadcaster Ten Network Holdings, up 3.5% to A$2.10, and John Fairfax Holdings, up 3.5% to A$3.82. Both have been tipped as potential takeover targets should the law change succeed.
The government is finishing a consultation on its new laws, and says it could be debated by Australian parliament in two months. However, it is not guaranteed success, with the opposition Labor Party historically against any relaxation of the laws it introduced when in power 15 years ago.
An opinion piece in the Fairfax-owned Sydney Morning Herald this morning argued that any change in the laws would benefit a small group of media moguls, but not the general public. Companies seen as potential suitors for Fairfax include Ireland's Independent News & Media and Dow Jones & Company.
If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .
_1.jpg)
.jpg)
