One firm sees more deals in the space in the coming years
Two top law firms have come together for the merger of Foxtel and Fox Sports in Australia.
Allens is advising New Corp and Gilbert + Tobin is acting for Telstra on the deal, which is expected to close in the fourth quarter of the year. Financial details of the merger have not been disclosed.
News Corp, the current sole owner of Fox Sports and 50% of Foxtel, will hold 65% of the new entity. Telstra, which is the partner of News Corp on the Foxtel joint venture, will hold 35% of the merged organisation.
News Corp will have four directors, including the chairman, on the new entity’s board, while Telstra will have two seats.
Allens said it is tackling all corporate and competition aspects of the deal, including obtaining Foreign Investment Review Board and Australian Competition and Consumer Commission (ACCC) clearance. The ACCC initially opposed the deal, with a review that started last October and dropped by the end of the year.
“The combination of the two businesses will see enhanced offerings for sports and entertainment content consumers, said Kylie Brown, who was Allens’ lead corporate partner on the matter.
Allens sees more deals of this nature in the media space in the future.
“The production, distribution and consumption of media has changed dramatically in recent years, and as a result we've seen increasingly innovative action from content providers like Foxtel. This is a trend we expect will continue in coming years,” said Jacqueline Downes, lead Allens’ competition partner on the deal. “This deal also provided an interesting case study on the ACCC's evolving approach to mergers in the rapidly changing media and content markets.”
Brown and Downes were aided by corporate partner Chelsey Drake. Senior associates Lizzie Fuller, Chris Travers, and Amanda Richman, as well as associates Gillian Hayden and Jack Ducommun also worked on the deal.
The Gilbert + Tobin team was led by partner Bill Spain, who was assisted by senior lawyer Jennifer Mulheron.
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