NBN Newcastle creates multimedia precedent in $145 million sale

TV station NBN has been purchased by SP Telecommunications Ltd for $145 million to create “Australia’s first converged multimedia network,” creating a precedent for future broadcast ownership models.

The purchase deal, worth $80 million in cash plus shares in SPT, will create “an integrated business which will provide both the network and content for digital broadcasting and multimedia services.”

Executive Director of SPT Denis Ledbury says the combination of these two businesses “makes clear commercial sense as they are already interdependent through shared infrastructure, common markets and staff.”

NBN was owned by Washington H Soul Pattinson, which also owns 54.7% of SPT.

The deal gives the companies a chance to capitalise on the broadcast and telco convergence aspects of digital tv broadcasting, merging voice, video and data services with broadcast infrastructure.

The deal aims to give the converged business the chance to create and market new content for digital broadcasting.

The sale is subject to shareholder approval in a general meeting in June. NBN is an affiliate of the Nine Network.