Rose Major, on 13-07-2008Australia’s Seven Network shocked the market late last week when news emerged of its A$100 million stake in one of the owners of its arch-rivals Nine Network and Foxtel, investment vehicle Consolidated Media Holdings (CMH).
CMH was recently the subject of a failed takeover by Lachlan Murdoch, Rupert’s elder son and ex-News Corp exec. The company owns 25% of Foxtel, 50% of sports pay-TV service Fox Sports’ producer Premier Media Group and 25% of PBL Media, which owns Nine.

Seven’s stake in CMH was reportedly 4.82% by the end of the week, with companies linked to the Seven, which owns assets including 47% of Seven Media Group (which owns Channel Seven, Pacific Magazines and 50% of Yahoo!7) and wireless broadband company Unwired, buying over a quarter of the daily turnover of shares on the market. But Seven need only disclose its holding, which could make regulators nervous, when it reaches five per cent. Under new cross-media ownership laws, Seven could not control over 15% of CMH.

With the company rolling in cash following the sale of 52% of TV, internet and magazine to Kohlberg Kravis Roberts in 2006, investments have been regular, including West Australian Newspapers and IP phone company Engin.

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