News welcomes media reform legislation

Company News

by David Murdoch

News Corp Australia (ASX:NWS) and Fairfax Media Limited (ASX:FXJ) and Seven West Media Limited (ASX:SWM) have welcomed the government's media reform legislation after winning long-sought reforms that will allow them to boost market share.

The loosening of ownership restrictions was approved by Australia's parliament yesterday after the government won support from the cross benches.

The changes, remove the so-called "two out of three" rule prohibiting one organisation from owning all three media - television, newspaper and radio - in any given city.

It could also clear the path for News Corp's co-chairman Lachlan Murdoch and television entrepreneur Bruce Gordon to launch a rival bid to CBS’sproposed buyout of broadcaster Ten Network Holdings (ASX:TEN) .

Shares in News Corp Australia (ASX:NWS) last traded .72 of a per cent lower at $16.67.