The Australian Competition and Consumer Commission (ACCC) has given Telstra's directories arms the green light to purchase online directory TrueLocal from News Limited, as both News Limited and Telstra continue to develop their ownership strategies.
The ACCC argued that the acquisition would “be unlikely to raise competition concerns in relation to the supply of business listings datasets due to the continued presence of credible alternative providers of such services.”
It remains unclear what Sensis was willing to pay for the business.
The sale fits in neatly with both Telstra and News Limited's evolving business strategies. News Limited has been trying to offload non-essential media assets while investing in new media companies, while Telstra has been making plays to bolster its media credentials and strengthen Sensis.
When News Limited revealed its plans to sell the directories company, the media giant said the company was “no longer a priority”. The move to offload TrueLocal follows News Limited's sale of other non-essential assets Getprice and Learning Seat.
News Limited has indicated that it wishes to focus on other media investments. Last year, the company increased its holding in pay TV company Foxtel from 25% to 50%, while bolstering its stake in Fox Sports Australian from 50% to 100%. Meanwhile, the company bought Australian Independent Business Media.
Meanwhile, the move is the latest play by Telstra to develop its media credentials and bolster its struggling directories arm Sensis, which has been beleaguered by falling revenues and hundreds of redundancies in recent years.
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