ACCC GIVES GO-AHEAD FOR NEWS CORP TO BUY ARM

Written on the 8 December 2016 by Paris Faint

ACCC GIVES GO-AHEAD FOR NEWS CORP TO BUY ARM

NEWS Corporation (ASX: NWS) has been given the green light to acquire Australian Regional Media (ARM) from APN News and Media (ASX: APN), following a review by Australia's competition watchdog.

The Australian Competition and Consumer Commission (ACCC) launched its review in August, and shortly after published a 'statement of issues' on October 2016 to gauge public response to the proposed acquisition.

After it received little negative feedback from surveyed readers and advertisers, the organisation decided not to act against the buyout of ARM's 58 separate publications and associated websites.

ACCC Chairman Rod Sims says there isn't an alarming competition overlap, despite the fact News and ARM are the two largest paper publishers in the state.

"The ACCC reviewed the acquisition very closely," says Sims.

"However, feedback from readers raised very few concerns and suggested that there is not close competition between the paid daily Queensland papers published by News and ARM.

"ARM's paid daily regional newspapers focus mostly on regional and local news and there is limited overlap with The Courier Mail which focuses on greater-Brisbane, state and national news."

The watchdog probed several key areas including south west Brisbane, Caboolture, Logan, Tweed Heads and the Southern Gold Coast.

While the ACCC conceded that some stakeholders may be stripped of choice, Sims says an adequate amount of options would still exist.

"This transaction will mean that readers in those areas who still value a community newspaper format are likely to face reduced choice," says Sims.

"However, the ACCC concluded that, overall, a sufficient range of local news choices and advertising options would remain available in these areas."

"Although some concerns were raised by small businesses and ad agencies in these local areas, most acknowledged that print advertising was of declining importance and identified other advertising options if News attempted to increase rates."

The ACCC also factored the decline of readership and advertising revenue generated by modern print media into their decision.


Author: Paris Faint

Latest News

SPOTLESS REJECTS DOWNER'S 'HOSTILE' $1.2B BID AS IT PROMISES A STRATEGY RESET

CLEANING and catering services company Spotless has rejected a $1.26 billion takeover bid from mining services firm D...

EXCLUSIVE INTERVIEW: MEGAPORT CEO VINCENT ENGLISH ON GLOBAL EXPANSION AND HOW TO SCALE UP A BUSINESS

THE RAPID expansion of Megaport (ASX: MP1) continues with the Brisbane-based company announcing a major partnership d...

BRISBANE ENTREPRENEUR BREAKS BARRIERS IN ECO-BUSINESS

TRACEY Bailey believes that if every person understood the true social and environmental cost of every product the...

DOMINO'S PIZZA EMPLOYEES OFFERED A SLICE OF THE PIE

DOMINO'S Pizza (ASX: DMP) has launched an employee share acquisition plan which will give its 26,000 staff the...

Related News

FURNITURE DISRUPTOR SET TO SHARE HIS ONE OF A KIND BUSINESS MODEL

IT'S no secret that Australians love homemaking. Their ceaseless quest to create the perfect place to call hom...

WEEDING OUT THE ASX'S BURGEONING CANNABIS TREND: 8 COMPANIES TO WATCH

A NICHE is budding on the ASX in the form of medical cannabis, an industry which has been on the country's rad...

FRESH CLASS ACTION TO REVEAL ANOTHER SIDE OF SLATER AND GORDON DOWNFALL

ACA LAWYERS has issued a formal letter of demand to Andrew Grech (pictured), managing director of Slater and Gordo...

STARSHIPS WERE MEANT TO DELIVER DOMINO'S PIZZA

NICKI Minaj may have been off the mark when she declared 'starships were meant to fly'. However, she m...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter