Commentary of Australian Media Convergence

Following on from my post on the convergence of media a number of Australian players and analyst have made some signficant comments.

Harold Mitchell of Media & Partners recently commented on the acquisition by Lachlan Murdhochs company Illyria launched a bid to buy half the 93rd biggest company listed in Australia Consolidated Media Holdings. Harold Mitchell said

this is a very clever move by both families - especially when the share price of CMH has gone down.

There is an announcement on the Illyria web site. It includes the following comment ...

Illyria's unique combination of experience in pay TV, broadcast and print media will provide the privatised Consolidated Media Holdings with new growth opportunities over the long term.

How times change, in 2006 Peter Cox in an interview on the ABC was talking about media ownership said

And the problem for the Government, says Peter Cox, is that Murdoch's News Limited and Packer's PBL have opposing objectives ... News Limited's now decided, gee, we actually want to do things that are not exactly the same as what Packer wants, and therefore they have a stalemate.

Lahclan Murdoch speaking to BusinessDay said

I'm only interested in running businesses I can add value to, so in order to pay the sort of premium we're paying for CMH — which is a 30% premium once you take the Seek shares out — I've got to be confident I can add value to justify that premium, and obviously I can add value most around the media assets.

He continued to say "This is going to be my focus over the years to come if we're successful."

A number of key players in the media market own the majority of new media in australia including realestate, jobs, car markets. One thing that can be said for worldwide media is that it is evolving very quickly at the moment.