Media test 'cumbersome'

The article says the federal government is pushing for a public interest test that would subject media mergers to extra scrutiny under proposed laws. Details in the article are limited, but the change would mean mergers face additional review beyond current checks.

Foxtel chief executive Richard Freudenstein is quoted in the article raising concerns. He described the proposed public interest test as 'cumbersome' and warned of potential consequences for deals.

According to the article, a media merger could be considered by up to four regulators under the proposed laws, which is the source of the concerns about added complexity and delay.

The article explains Foxtel's view that having a merger considered by up to four regulators would add complexity, cause delays and could discourage legitimate deals—hence calling the proposal 'cumbersome.'

The article notes that reviews by multiple regulators could cause delays and potentially discourage legitimate deals. That suggests deal timelines could lengthen and some transactions might be reconsidered because of the added regulatory hurdles.

No. The article does not say the laws will categorically block mergers. It reports that Foxtel warned the proposals could be cumbersome and potentially discourage legitimate deals, but it stops short of saying mergers would be banned.

The article quotes Richard Freudenstein, chief executive of Foxtel, which is described as Australia's largest pay TV company. Their view is notable because a major industry participant is warning that the proposed rules could materially complicate media transactions.

Based on the article, investors should watch developments in the proposed laws and industry commentary—particularly responses from major media companies and any statements about how many regulators will be involved—since those details drive potential delays and changes in deal activity.