It is well documented that iiNet was recently approached for an acquisition by TPG for around $1.4b. Whilst this creates vast opportunity it also creates vast issues for TPG as iiNet has also just lost a case where Federal Court judge Nye Perram granted Dallas Buyers Club film owners the right to preliminary discovery of the identities of iiNet customers who believe have shared their intellectual property.
Fortunately for consumers and investors the judge declined to order that iiNet share its customers’ email addresses or other identifiable content.
Whilst there is an appeal likely there are also going to be questions by consumers on how well there are protected by the budget telecommunication providers. iiNet, along with other smaller providers, were awarded costs and ordered to provide the judge with copies of client communication for review.
iiNet is trying to protect the 4000+ clients from large lawsuits and reduced settlement offers as exercised in the US that have led to record breaking judgements.
This merger has been plagued since its inception with the ACCC already close on the tail of this merger plans to watch price and competition.
We are currently offloading all of our TPG and iiNet holdings.