A Threesome?

Staff Writer

With the Fed Government set to rubberstamp and abolish the reach rule within the next three months, the carve-up of the media landscape could take an interesting path.

The Financial Review is pushing a three-way tie-up between Nine Entertainment Co, Southern Cross Austereo and Fairfax.

That would bring to the table a scaled up media group with $4 Billion in combined revenue to take on the combined might of News Corp with its stable of print, sub television and FTA Network Ten, and APN News & Media with its radio, print, outdoor and web assets.

When you look at it, it possibly makes sense.  

Teaming up Fairfax’s print and web properties, Nine CO’s television and web footprint and SCA with their suite of radio and digital assets along with their current Regional Television stations that mostly carry Ten Programming.

Possibly hedging bets in the background is Nine Co’s largest shareholder and owner of the WIN Television Network (current Nine Affiliate) and a couple of regional radio stations, billionaire Bruce Gordon. He also has a slice of Network Ten.

If the government does rubberstamp the changes to media laws including the 75% of the population Reach Rule, it will be game on which will trigger a number of mergers and acquisitions this year.

Late last year Nine Co and SCA were forced to release a statement to the Stock Market advising that both would “make an appropriate announcement to the market in accordance with its disclosure obligations” if and when a deal was struck.   

Another potential player on the stage is Europe’s Bauer Media, who are yet to show their cards despite earlier rumbles that they were casting a ruler over SCA’s books late last year.

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