MUMBAI: In a deal aimed at reviving subscriber growth and taking on growing competition from free-to-air television stations, Australia‘s biggest pay-TV platform Foxtel has bid $2 billion for taking over rival Austar.

The bid came after Austar‘s biggest shareholder, U.S-cable group Liberty Global agreed to back the cash offer after years of negotiations with Foxtel‘s three shareholders - Telstra, News Corp and billionaire James Packer‘s Consolidated Media Holdings.

Foxtel‘s chief executive Kim Williams has said that the deal would allow the combined group to cut costs and compete better against free-to-air television networks that have been launching new digital channels and hurting the pay-TV industry.
 
Foxtel‘s main audiences are in metropolitan areas, while Austar focuses on regional markets. It is believed that the combination would enable Foxtel to compete more effectively and invest more.