With a new opposition communications spokesperson, Lindsay Tanner, in place, the federal government's proposed changes to media ownership laws look set to proceed through the upper house of parliament. Previously, the Labour Party had opposed relaxation of media legislation.
Industry insiders tip a wave of consolidation among media players in Australia if the laws are changed. While radio is tipped to be the first sector to benefit, newspapers could also be affected.
Independent News & Media, publisher of the UK's The Independent is known to be interested in making a takeover bid for leading Australian publisher John Fairfax Holdings, owner of The Sydney Morning Herald.
Sir Anthony O'Reilly, executive chairman of Independent, recently increased his stake in the Australian media firm APN News & Media. Australian law currently restricts foreign ownership of mass-circulation newspapers. It says that a single foreign shareholder would be able to hold up to 25% of the shares in a mass-circulation newspaper, with a maximum of 30% for all foreign interests.
News Corporation chairman and US citizen Rupert Murdoch would also welcome relaxation of the media laws. Cross-media ownership laws restrict TV broadcasters from controlling more than 15% of a newspaper in the same licence area.
Other foreign companies tipped by analysts to be interested in Fairfax, which also publishes Australian Financial Review, include Dow Jones, publisher of the Wall Street Journal, and Pearson, which publishes the Financial Times.
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