The share-market frenzy that greeted the passing of the government’s new media laws has abated, with media owners now waiting on the government to declare the operational start date for the new legislation. The new laws remove foreign ownership restrictions and significantly relax previous cross-media ownership rules.

The laws are yet to become operational, but many media owners have positioned themselves to take advantage of the changes, with Publishing and Broadcasting Limited and Seven Network spinning off their television, internet and magazine interests into joint ventures co-owned with private equity funds, and raising billions in cash for potential raids.

Both Kerry Stokes and Rupert Murdoch have bought stakes in Fairfax Media, which stand to be significantly diluted if the Fairfax merger with Rural Press proceeds.

Network Ten’s 56 per cent owner, the CanWest group, is considering offers for the sale of its interest in the business. Smaller media groups are also considering their position under the new laws and are sounding out interest from foreign private equity firms.

Meanwhile, News Corporation has successfully bought Federal Publishing Company’s (FPC) magazine business for $180million and paid a similar amount for FPC’s community newspaper business – a deal that was approved by the Australian Competition & Consumer Commission (ACCC) following an investigation into whether it would substantially lessen competition. However ACCC chairman, Graeme Samuel, said, “Overall, the ACCC was satisfied that sufficient advertising alternatives existed in this case to provide a competitive constraint to News Limited.”