Telstra is in discussions with television channel TVN about buying a stake in the breakaway $250 million thoroughbred racing broadcaster.
A formal tie-up would significantly strengthen the 5-year-old racing channel & could help to fund a possible bid for rival Sky Channel, owned by gambling giant Tabcorp.
At stake is one of the most important levers in the $2.5 billion-a-year wagering sector, its TV broadcast rights. The early-stage talks between TVN & senior Telstra executives have centred on the telco giant taking as much as a quarter stake in the racing channel - already a joint-venture partner in mobile & internet coverage.
Telstra's bid to make a bigger play in racing comes amid efforts to boost broadband sales through its T-Box internet-enabled digital video recorder. T-Box was launched in June & Telstra wants to increase its range of content. A tie-up with Telstra would give TVN extra cash to finance a bid for its bitter rival Sky Channel.
TVN had been in talks with Tabcorp about a merger in which TVN would hold 51% of Sky Channel, but those talks collapsed in April when the two failed to reach an agreement on price suggested by independent adviser PricewaterhouseCoopers.
TELSTRA IN DISCUSSIONS TO BUY TVN STAKE