TPG Telecom's $1.4 billion takeover of iiNet is not expected to impact on the $20 million media pitch for iiNet's business, AdNews understands.
This morning TPG shocked the market by floating the news of the takeover, with the iiNet board recommending TPG's offer of $8.60 per share to its shareholders.
With shareholders to formally vote on the proposition in a shareholder meeting in Perth in June, there are questions over what form the new entity would take. The deal also needs to be cleared by the Australian Competition and Consumer Commission.
More importantly for media buyers, who would buy the new entity's media for them?
It is believed the media agencies currently facing off for the account, OMD WA and Initiative Perth, have not been apprised of any changes at this point in time, and are currently waiting to see how it will all play out.
It is believed TPG does its media buying in-house, and whether this would change as a result of the change of ownership is not known at this early stage.
One thing is for sure, with the iiNet pitch having already dragged on, the board of iiNet is sure to be focused matters other than resolving a media pitch.
AdNews is currently seeking comment from iiNet.
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