New Zealand Regulator Blocks Sky Network Television, Vodafone Deal
February 22 2017 - 03:37PM
Dow Jones News
By David Winning
SYDNEY--Sky Network Television Ltd. (SKT.NZ) said Thursday that
New Zealand's antitrust regulator won't approve its proposed 3.44
billion New Zealand dollar (US$2.47 billion) merger with the local
operations of Vodafone PLC (VOD.LN).
In a regulatory filing, Sky Network Television said the New
Zealand Commerce Commission "concluded that it cannot be satisfied
that the merger would not substantially lessen competition."
Sky Network Television had pursued a deal with Vodafone to
offset a loss of customers to digital rivals. The Auckland-based
company's traditional pay-television business is under pressure
from digital options such as on-demand and streaming content
provided by the likes of Netflix Inc.
On Wednesday, Sky Network Television said subscribers fell to
816,000 in December, from around 853,000 in June. That contributed
to a 32% fall in net profit to NZ$59.3 million in the six months
through December.
Sky Network Television's competitors mounted a concerted effort
to derail the deal, partly because they feared it would entrench
the former's monopoly of sports content rights in a country where
the All Blacks dominate world rugby. Three New Zealand companies -
2degrees, Spark NZ Ltd. and InternetNZ - were prepared to challenge
the deal in court.
"This is a very disappointing conclusion to a merger we saw as
enhancing New Zealand's communications and media landscape," Sky
Network Television Chief Executive John Fellet said on
Thursday.
-Write to David Winning at david.winning@wsj.com
(END) Dow Jones Newswires
February 22, 2017 15:22 ET (20:22 GMT)
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