Telstra entering the media business

April 9th, 2007

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In our previous article, Is the Telstra T3 offering worth a buy?, we said that,

Will Telstra remain just a telecommunication company in the future? This is a very interesting question. If the answer is ?yes?, we would not be keen in investing in Telstra because there are much more lucrative opportunities elsewhere. We suspect the answer will be ?no? because if we were Sol Trujillo, we would have taken the strategic path to transform Telstra to one that is more than a telecommunication company. We believe this strategy is the key to Telstra?s future.

In this article, See like an entrepreneur… how will Telstra be like in 2010?, we quoted Sol Trujillo,

By 2010, Telstra wouldn?t any longer be called just a telecom business. It?s going to be a media-comms business, which means our revenue profile [will] change.

Today we saw this article in the news media: Telstra’s net bid for $1bn in ads.