Nine sells touring arm for $640m, to focus on TV, digital, streaming.

Whilst I don’t normally file on the various investments of media companies, there is a line in Nine’s press release on the sale of Nine Live that is worth a mention.

Nine is selling its Nine Live touring / events business to Affinity Equity Partners for $640 million.

CEO David Gyngell notes, “With the sale of Nine Live, our focus now is on optimising the performance of our Free-to-Air TV, Digital and Subscription Streaming businesses and maximising returns to our shareholders.”

The statement indicates Nine Entertainment Co. will be in a net cash position, with undrawn bank facilities. That could position Nine for new opportunities that fit with its broadcast and digital outlook, including sports rights.

“Nine Live has grown strongly under NEC ownership for the past 8 years. The team, led by Geoff Jones, have done a remarkable job expanding the business into Touring and Events and, more recently, into international sports and exhibitions,” he said.

“The sale of the business provides an attractive outcome for NEC shareholders, releasing significant proceeds to enable enhanced shareholder returns while retaining substantial financial flexibility. We will also retain a commercial relationship with the business and look forward to continuing to work together in areas where there are mutual benefits between NEC and Nine Live.”

Of course NEC still has other interests, having recently invested in Pedestrian.TV website and has previously invested in other online ventures including Cudo, StyleTread.

NEC remains a 50% owner in SVOD service Stan with Fairfax Media.