Nine sells Southern Cross shares
Nine loses interest in a merger with Southern Cross Austereo.
- Published by David Knox
- on
- Filed under News
Yesterday Nine Entertainment Co confirmed it had sold its entire 9.99% shareholding in Southern Cross Media (Southern Cross Austereo) at a price of $1.54 a share.
Mediaweek reports the price of Southern Cross Media shares has soared in recent months, and there has also been some speculation that after looking at the potential of a merger of the two companies if media law reform goes through, the idea has been put on hold.
Nine has recommended a halt to media reform proposals until broadcast licence fees are cut.
Nine CEO Hugh Marks said: “Our relationship with Southern Cross has never been better. The early performance of our new affiliate agreement has surpassed our expectations, and we look forward to a long and prosperous relationship between our two companies.”
Proceeds of the sale will provide the broadcaster with increased flexibility, including increased programming funding for 2017.
4 Responses
I like the tiny “exit” sign just notable to the left. Very apt!
Buy enough shares to influence the board, do the deal, sell the shares. Strategy.
Expecting a cash strapped Govt to reduce a source of income is a big ask.
Media reach laws have been neutered by Internet streaming.
They must have been advise the media laws won’t change in the forseeable future.
Hope everyone else got in quickly because Southern Cross Media shares finished 13% down. Perhaps Nine will invest some of that profit in an accurate clock for the program scheduling department.