Regional media company ACM buys bigger stake in Prime
Regional media company ACM has purchased another stake in Prime Media Group but it comes amid concerns over outdated media ownership laws.
Regional media company Australian Community Media has been given the green light to bolster its shares in commercial television broadcaster Prime Media Group.
But the Australian Communications and Media Authority approval comes amid serious concerns from ACM’s executive chairman Antony Catalano — the former Domain boss — who said outdated media ownership laws needed urgent reviewing.
ACM publishes regional newspapers and its approved purchase of an additional 5 per cent of Prime from WIN TV owner Bruce Gordon takes the company’s stake to 19.99 per cent.
The transaction needed approval from the regulator before it was allowed because it was above the 15 per cent threshold of a controlling interest of media under the Broadcasting Services Act 1992.
Mr Catalano is the largest shareholder in Prime together with his business partner Alex Waislitz.
But Mr Catalano said unless the legislation was updated it remained “antiquated” and would require ACM to sell the Bendigo Advertiser and The Daily Advertiser in Wagga Wagga.
This is because there must be at least four independently controlled media entities within one regional area.
“The voices test in regional Australia means there has to be at least four commercial voices while there’s five commercial voices allowed in metropolitan areas,” he said.
“The legislation was drafted in 1992 and the voices test only includes a daily newspaper which is deemed to be something which is published more than four days a week, a television station or a radio station.”
Mr Catalano said any digital enterprise which can be read by regional readers isn’t considered a voice in these areas, including from large media outlets or social media giants such as Facebook or Google.
ACMA confirmed in the announcement: “The undertaking commits Rural Press to procure the sale of newspapers it owns in each affected area within a period specified in the notice of approval.”
Prime Media Group shares closed at 21c on Thursday, down 2.3 per cent.
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