This was published 8 years ago
News Corp buys Sky News in Australia and New Zealand from Seven and Nine
By Lucy Battersby
News Corporation has fully acquired Australian News Channel, which produces Sky News in Australia and New Zealand.
Australian News Channel was jointly owned by BSkyB, Seven Network, and Shertip Pty Ltd, which is wholly owned by Nine Network. News Corp is headed by Rupert Murdoch and also publishes newspapers in Australia, including The Australian, The Daily Telegraph, The Courier Mail and The Herald Sun.
Sky NewsCredit: Jessica Shapiro
Sky News is broadcast on subscription television network Foxtel, which is jointly owned by Telstra and News Corp. The move is not subject to any media ownership restrictions because these do not apply to subscription television.
Australian News Channel has 204 employees and had a net profit of $3.9 million for the year 2015-16, according to its latest corporate filing. It owns 100 per cent of New Zealand News Channel, which runs Sky News New Zealand.
"This acquisition has come about because News Corp Australia recognises the increasing value of SKY NEWS; its employees, the shows they host and the audience it attracts. Together, we will ensure the strengths and benefits of each company are leveraged fully in the long term," News Corp executive chairman Australasia Michael Miller said on Thursday.
The investment brought together "two of Australia's strongest and most credentialed news media sources", he added.
News Corp did not disclose a price.
Australian News Channel's chief executive, Angelos Frangopoulos, said: "We are now within a global business forged by quality journalism and I can't think of a better partner to invest and grow Sky News."
"The industry is rapidly changing and today's announcement goes beyond securing the future of this company - it means it will be playing a significant role."
News Corp now owns Sky News Live, Sky News Business, Sky News Weather, Sky News Multiview, A-PAC Australia's Public Affairs Channel, Sky News New Zealand and Australia Channel, which features commentators such as Alan Jones, Mark Latham, Andrew Bolt and Peta Credlin.
Australian News Channel's gross assets are worth about $25 million. It paid its three shareholders a dividend of $3.9 million in 2015-16, down from $7 million the previous year. It earned revenue of about $53 million for the past two financial years from selling its news and weather services.