The Liberal government, headed by prime minister John Howard, is set to introduce legislation to relax media-ownership laws in the current session of parliament. However, for the government to pass the laws, it will need the support of the opposition parties.
It is reported that O'Reilly will meet with Simon Crean, leader of the main opposition, the Labor Party. Labor is traditionally against reform of media-ownership laws, but is thought to be softening its stance. Currently, a single foreign shareholder can own up to 25% of shares in a mass-circulation newspaper.
However, the Labor Party is still opposed to any change in the cross-media ownership laws, which prevent TV broadcasters from controlling more than 15% of a newspaper in the same area as their broadcasting interests.
O'Reilly owns a 40% stake in the Australian media company APN News & Media. The group of which he is chairman, Independent News & Media, is interested in acquiring Australian newspaper publisher John Fairfax & Sons, which runs leading Australian newspapers such as The Sydney Morning Herald and Melbourne daily The Age.
It was reported earlier in the month that an executive from Pearson, publisher of the Financial Times, has also met with Australian officials. Pearson is also understood to be interested in acquiring Fairfax, which would give it control of The Australian Financial Review.
Any change in the media laws is likely to spark a wave of consolidation in the Australian media industry.
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