Both men were non-executive directors of Australia's One.Tel

For Lachlan Murdoch, it is his first big deal since leaving his father Rupert's business, News Corp, in 2005, although he is still a director of it.

For James Packer, it is only three months since he split his late father Kerry's media and gambling businesses.

Consolidated Media was the company formed by that split.

It is 37% owned by Mr Packer's Consolidated Press Holdings.

Among its assets are a 25% stake in the pay-TV provider Foxtel and about 27% of the internet job site Seek.

It is the second time that the two media empires have tried to work together.

The first was the Australian telecoms firm One.Tel, which ended up losing the two companies about 1bn Australian dollars.