SYDNEY: Regional broadcasting business WIN Corporation has secured its push into subscription TV, after winning the $23.5 million bid for niche pay TV operator SelecTV.
Shareholders of SelecTV last Friday (11 August) voted overwhelmingly in favour of the move, which gives WIN a 50.1% controlling stake in the company.
WIN now plans to buy the remaining 49.9% of the company, at a cost of around $23 million, knocking out a rival bid from listed telco group Access Providers.
SelecTV chairman Shane Allan said directors had unanimously approved the WIN proposal and welcomed the involvement of WIN Corporation into the company.
Allan said the $23.47 million in equity funding will enable the company to fund its business plan.
More importantly however, SelecTV will now have access to WIN’s vast network of regional TV stations, its production company Crawford Productions, and its 50% stake in telco group Soul.
“An alliance between two such significant companies, whose operations are managed by some of Australia’s most experienced media executives, secures the future of our dynamic young company,” Allan said.
SelecTV offers ethnic subscription-TV channels and low-cost English, Spanish, Greek, Vietnamese and German entertainment packages. The company is believed to have around 4,000 subscribers, but needs 80,000 to break even.
Andrew Gordon, executive chairman at WIN, said subscription and multi-channel TV was a natural extension to WIN’s current broadcasting operations. He said the group's infrastructure and data networks across Australia would drive SelecTV’s growth.
“WIN is the largest regional television broadcaster in Australia and we see SelecTV as a natural fit into our operations which will compliment WIN’s existing investments and provide development opportunities,” Gordon said, in a statement.
WIN will make a bid for the remaining 49.9% of SelecTV early this week.
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