Crocmedia & SEN deal done
The ink is now drying on a merger deal between the owner of Melbourne sports station 1116 SEN and sports content and entertainment business Crocmedia.
It’s a deal that has been in the works for months and will see Pacific Star Network issue 91.6 million shares to Crocmedia shareholders and executives in exchange for 100 per cent equity in the Melbourne production house.
Crocmedia’s Craig “Hutchie” Hutchison will become chief executive and managing director of the new entity under the Pacific Star Network banner.
PSN chairman Craig Coleman says the proposed merger is ‘transformational’, which will see the group holding two broadcast licenses (SEN and Classic Rock Radio), three digital stations (AUSSIE, KOOOL and Rythmos).
On top of that, it will also have syndication agreements in 88 radio markets across metropolitan and regional Australia.
With any merger comes cost cutting and in this case, it’s estimated there’ll be $3 million worth of savings in ‘cost synergies’. It’s yet to be seen where those cost savings will come from.
While there’s not expected to be any objections raised, the merger is still subject to shareholder approval. The final vote will come at a general meeting in March.