One NZ-Dense Air deal given green light, UK watchdog seals $116m Serato deal on eve of NZ decision

One controversial technology deal received regulatory approval overnight, but a second faced complications on the eve of the Commerce Commission’s decision.

The ComCom has granted permission to One NZ (formerly Vodafone) to buy Dense
Air, a small company that controlled large parts of the 5G spectrum. CEO Jason Paris said acquiring the additional airwaves capacity “would be like adding an extra lane on the highway.”

2degrees argued the deal would give One NZ control over too many 5G-friendly air wars, reducing competition with the Paris company controlling more ‘roads’, to extend its analogy.

One New Zealander countered that there was nothing stopping 2degrees (co-owned by Australia’s largest pension fund and wealthy Macquarie) from bidding in what it called an open sale process. Acquiring the spectrum would bring it on par with Spark.

Britain’s Dense Air entered the New Zealand market in 2018 when it paid $17.5 million (then $25.75 million) to acquire two 35 MHz blocks of the 2.6 GHz radio spectrum from two parties: Cayman Wireless , a subsidiary of Canada’s Craig Wireless (a firm associated with the later days of failed Auckland wireless internet provider Woosh Wireless) and Blue Reach, owned by rich lister and CallPlus founder Malcolm Dick.

Infratil-owned One NZ has not put a price tag on the pending deal. But with upgrades to the 5G network now in full swing and an ever-increasing need for mobile data, this could well exceed the $25.75 million paid by Dense Air.

UK watchdog: $116m Serato deal ‘could see DJs pay more to entertain partygoers’

Meanwhile, the UK regulator says it has uncovered several potential issues with a plan by Japan’s ATC (owner of the Pioneer DJ brand) to buy Auckland-based Serato for around $116 million after completing a “Phase One Investigation” .

Serato makes consumer music software and also dominates the market for the professional software used by several makers of DJ hardware, such as the decks used to play songs in nightclubs and parties.

The UK regulator’s May 1 statement comes on the eve of the Commerce Commission’s ruling, which is due on May 8 (although the regulator has already postponed its decision three times).

Joel Bamford, executive director of the Competition Markets Authority, said:

The CMA has asked ATC to address its concerns.

The Serato deal was already in need of a remix.

In a Feb. 8 statement of issues, the Commerce Commission said it “does not currently believe” the deal met the criteria for approval.

Serato was founded in the 1990s by University of Auckland colleagues Steve West and AJ Bertenshaw (now AJ Wilderland), who remain its largest shareholders.

Chris Keall is an Auckland-based member of the Herald’s business team. He joined the Herald in 2018 and is a technology editor and senior business writer.