FOXTEL + AUSTAR… Acquiring Minds Wish To Know + Xbox 360 Adds (SatBroadcasting™)

[SatNews] Combining forces could see nearly $3 billion in annual revenues, and there’s unmetered access ahead for Xbox 360 users…

FOXTEL has stated the Company has forwarded a conditional proposal to AUSTAR, which, if implemented, would result in FOXTEL acquiring 100 percent of the shares in AUSTAR and the merger of the FOXTEL and AUSTAR businesses. A successful transaction would bring together two of Australia’s major subscription TV service providers, creating one of Australia’s largest media businesses with over 2,500 full-time equivalent employees and anticipated revenues of over $2.8 billion with a combined investment in original Australian content of more than $500 million per annum.

FOXTEL believes a merger of FOXTEL and AUSTAR would bring significant benefits to consumers, in particular:

• A merged FOXTEL/AUSTAR will be able to roll out new digital products and services even faster to existing and new customers
• Australian consumers in regional areas will be able to enjoy access to new digital subscription channels as well as new flexible packages and pricing through products such as FOXTEL on Xbox 360 and FOXTEL on T-Box®
• Consumers in regional Australia will also get access to the same quality digital services at the same time as their metropolitan counter parts
• The continuation of the long history over the last fifteen years of FOXTEL investing in and being one of Australia’s great innovators in media delivery

It is FOXTEL’s intention to maintain the world class AUSTAR facility in Robina, Gold Coast, which would be an important part of the combined group. FOXTEL’s proposal to AUSTAR is indicative, non-binding and subject to a number of conditions and there can be no certainty that any transaction will eventuate. Conditions to the finalization of any transaction include the Board of AUSTAR recommending the transaction to AUSTAR shareholders, the completion of due diligence by FOXTEL and entry into definitive transaction documents once approved by the Boards of FOXTEL and its Partners. Any transaction will be subject to regulatory approvals, including from FIRB and the ACCC. he transaction would be funded by a combination of FOXTEL bank debt and shareholder capital contributions. FOXTEL is being advised by AquAsia, UBS AG and Allens.

FOXTEL has also announced FOXTEL announced Telstra BigPond broadband customers will not be charged for any data when using FOXTEL on Xbox 360, and there will be six BigPond TV channels added to the service from Monday, May 30, 2011. This means all video content will be unmetered for Telstra BigPond customers when viewing the FOXTEL on Xbox 360 service, including watching TV shows from up to 30 world-leading FOXTEL channels on the live streaming television service, the six BigPond TV channels, Catch Up TV, and hundreds of new release films, library movies and TV episodes from the FOXTEL on Xbox 360 On Demand service. The six channels from BigPond TV cover sport, racing and news including: FOOTY TV the AFL channel, LEAGUE TV the NRL channel, V8 Supercars Australia, RACING TV with TVN, BigPond Sport TV, and BigPond News. These channels will be available on the FOXTEL on Xbox 360 service to all Get Started subscribers at no additional charge.

This is the first time FOXTEL on Xbox 360 subscribers will have the benefit of both selected live coverage of sports via FOX SPORTS PLAY and ESPN, as well as streamed AFL and NRL games available on delay. In addition, from June games from the current season of AFL and NRL will be available on the service as Catch Up video on demand, and a highlights piece will also be available for each AFL and NRL game. Live AFL will come to FOXTEL on Xbox 360 from the start of the 2012 season.