Telstra Corporation Ltd has sought to quash growing speculation that it was interested in launching an acquisition bid for one of Australia's largest media companies, saying that it has no intention of making a media acquisition, according to a report by The Australian.
“We are not looking at Nine Entertainment,” Telstra's media boss Rick Ellis said, according to the newspaper. “We are not contemplating any acquisitions at this point in time.”
Debt-laden Nine had been the focus of much of the speculation surrounding Telstra's potential interest in a media company acquisition.
However, despite the denial of any takeover interest, Mr Ellis did not deny that Telstra is seeking to shift its business model closer towards the media sector, where it hopes to source a greater share of its profits.
“At the end of the day, my job is to lead a business that is going to grow and grow dramatically. The paradigm that we've approached this business around in the past, which is a telco paradigm, us up for serious review,” he said, according to The Australian.
“We are changing the model from a telco model, which is largely one where content and the investment in content is justified on the benefits of the pull-through benefits of market share and churn reduction, to positioning that business as a (profit and loss) business in its own right.”
He went on to describe Telstra as “sideline spectators” in the takeover battle between News Limited and Seven Group who are both seeking to buy James Packer's ConsMedia.
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