30 May 2011

Pay TV monopoly foreseen

7:05 am on 30 May 2011

The pay television industry in Australia is turning into a monopoly.

The latest indication of this is a bid by Foxtel for its only rival in the sector, Austar, which operates in the regional cities.

The bid is pitched at around $A2 billion or $A1.52 per share - well above the recent share price of around $A1.36.

Austar's major shareholder John Malone's Liberty Global sees it as appropriate.

Rupert Murdoch is a major figure behind Foxtel. Others are James Packer and Kerry Stokes.

Radio New Zealand's Sydney correspondent says the group is clearly positioning itself to supply content to the new national broadband network when it is built.

The big question is whether regulators will allow the deal to pass.