M&A surge predicted as Australia plans media law overhaul

A proposed removal of restrictions on media businesses is expected to spark over A$2b of mergers, according to analysis by Citigroup.

Australia looks set to introduce new media reforms which would increase the number of mergers rawpixel

The reforms, coming from the government of prime minister Tony Abbott, someone with a close relationship with media tycoon Rupert Murdoch, would cut the existing rule that commercial TV networks have to broadcast to 75 per cent or less of the population. The existing ’two out of three’ rule would be thrown out, permitting organisations to operate in future in all three sectors of television, radio and newspapers. Rodney Tiffen, media professor at Sydney University, underlines the close links between politicians and the Murdoch empire. He said: ‘Politicians from both the main parties in Australia have tended to play up to Murdoch and curry favour with him.’ Source: Financial Times

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