Media Ownership Laws… the next move?
Southern Cross Austereo CEO Grant Blackley not surprisingly has been recently arguing for Australia’s media laws to be changed. Blackley argues that recent moves by metropolitan TV networks makes the current media laws ‘archaic’ and that the TV networks were making a ‘mockery’ of the outdated media laws.
Even though some networks have been streaming their video content for some time, Blackley’s argument is based on the fact that TV networks streaming video make the media laws irrelevant.
He has been quoted as saying: “It’s time the government urgently repealed the rules.”
Clearly any such change would benefit Mr. Blackley’s company Southern Cross Austereo and its shareholders. With SCA’s share price currently at around 94 cents, having once been at $1.15 about 6 months ago and $1.89 around 2 years ago; it has been strongly rumoured that Nine Entertainment would acquire SCA should media laws be changed.
Adding weight to the rumours is the fact that recently installed Chairman of SCA Peter Bush is a former Nine Board member.
Sevens CEO Tim Worner disagrees with Blackley saying nothing has changed since 2009 and questioned why SCA ‘didn’t arc up back then’.
It seems almost certain that should the laws change, Nine Entertainment will pounce on SCA. And some say that could happen ‘fairly quickly ‘.