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Report: Nine, Southern Cross in talks

Metro & regional broadcasters reportedly explore a merger deal -but not involving WIN.

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Nine Entertainment Co and Southern Cross Austereo have reportedly explored negotiations that would sidestep current media ownership laws which prohibit access to more than 75% of the population in any single market.

The Australian reports Nine would buy Southern Cross’s coveted metropolitan radio assets and park its remaining regional assets in a holding entity.

The speculation follows Hugh Marks becoming CEO of Nine earlier this week. He owns talent agency RGM with Southern Cross boss and former TEN CEO, Grant Blackley.

“This is a 50-50 chance,” a party to the deal told the newspaper.

Any talks would also be held outside Nines current affiliate partner, WIN Corporation.

Meanwhile Fairfax suggests, if Nine was to acquire Southern Cross Bruce Gordon’s WIN would be left to partner with TEN.

5 Responses

  1. Bruce Gordon the owner of WIN has just under 15% of Nine and is it’s largest shareholder. Despite Hugh Mark’s relationship with Grant Blackley, If Bruce Gordon doesn’t want this to happen, it wont happen. A more likely scenario could be WIN taking over Nine.

  2. A Boardroom game of pass-the-parcel, who is going to get stuck with TEN’s programs? I can’t see WIN giving up 9’s programs without a fight. We all thought that the Networks were strapped for cash and the WB savings were to be spent on more local drama. It’s a free kick for the Communications Minister to help him drop the reach rule. The “100% ownership but not control” trick has worked well in the past. Bluff and counter-bluff!

  3. Yes but Nine has been putting out that they aren’t really interested. Now that they can stream around affiliates they aren’t going to pay much for either Southern Cross and will jack up WIN’s fees further. This could be just a strategy to drive down the price until diversifying into radio becomes an offer they can’t turn down.

    Prime’s shares are low because they have recently renegotiated their affiliation deal and Seven isn’t interested in buying them. So technology will rend them worthless before any deal can done.

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