Updated below: The two-year wait for Lachlan Murdoch’s major media move is finally over. The Australian newspaper is reporting that he’s crafted a $1.75 billion (AUS$2 billion) deal to take Australia’s Consolidated Media Holdings Ltd. private. The paper didn’t mention sources but said it “understands” an announcement will be made to the Australian Securities Exchange Monday and that the deal will go CMH shareholders later this year.

Murdoch returned to Australia and set up a private investment fund, Ilyria Pty, Ltd., following his 2005 surprise departure from News Corp. (NYSE: NWS), where he was believed to be on his way to one day succeeding his father Rupert at the company’s helm. He is still on the News Corp. board. The Australian, which is owned by News Corp., stressed that the funds for the CMH deal were raised outside of the company.

Details of the new JV:  According to the paper, Murdoch and CMH deputy chairman James Packer each will own 50 percent in a new joint venture. It will include:

-- CMH’s 25 percent stakes in Foxtel and PBL Media (PBL Media owns the Packer family’s one-time flagship Nine Network and ACP Magazines, as well as stakes in online ventures such as ninemsn and carsales.com.au).
-- a 50 percent stake in Fox Sports and 27 per cent of online recruitment firm Seek.

Murdoch’s other investments so far include Spot Runner and Aussie online DVD service Quickflix.

Update: CMH confirmed the approach - a 50/50 JV between Illyria and Conspress (CMH’s major shareholder) at AUS$4.80 per share (AUS$4.06 plus a variable amount of cash). But CMH said the JV partners hadn’t yet agreed all terms while the proposal is “highly conditional”. Packer has stepped aside from CMH while this is ongoing and CMH has appointed a subcommittee to scrutinize the proposal. Consolidated has stakes in Channel Nine, its online joint venture ninemsn and the Seek recruitment site. See full announcement to the Australian Securities Exchange.

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