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Nine and Fairfax announce merger

Updated: New print / television / radio merger will be known as Nine.

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Nine Entertainment Co. Holdings Limited (Nine) and Fairfax Media Limited (Fairfax) will join forces, with the new company to simply be called Nine.

The combined business will include Nine’s free-to-air television network, plus Domain, Stan and 9Now, as well as The Sydney Morning Herald, The Age, and regional papers, 2UE, 2GB, 3AW and other Macquarie Media property.

The Directors of Fairfax will unanimously recommend that Fairfax shareholders vote in favour of the Scheme in the absence of a superior proposal and subject to an independent expert concluding that the Proposed Transaction is in the best interest of Fairfax shareholders.

Nine’s Chairman Peter Costello said: “Both Nine and Fairfax have played an important role in shaping the Australian media landscape over many years. The combination of our businesses and our people best positions us to deliver new opportunities and innovations for our shareholders, staff and all Australians in the years ahead.”

Fairfax’s Chairman Nick Falloon commented: “The Fairfax Board has carefully considered the Proposed Transaction and believes it represents compelling value for Fairfax shareholders. The structure of the Proposed Transaction provides an exciting opportunity for our shareholders to maintain their exposure to Fairfax’s growing businesses whilst also participating in the combination benefits with Nine.”

Nine Chief Executive Officer Hugh Marks commented: “Nine’s strong operating momentum has allowed us to invest in the future of our business through each of 9Now, Digital Publishing and of course, Stan. This merger with Fairfax will add another dimension, creating a unique, all-platform, media business that will reach more than half of Australia each day through television, online, print and radio.

“For our audiences and employees, this means we will continue to be able to invest in premium local content across news, sport, entertainment and lifestyle. For our agency partners and advertisers, we will provide an expanded marketing platform with even greater advertising solutions underpinned by a significantly enhanced data proposition. For our shareholders, the merged business will generate an increasing percentage of its earnings from high growth digital businesses that provide a compelling opportunity to generate both incremental value and cash flow into the future.”

Fairfax Chief Executive Officer Greg Hywood said: “The Proposed Transaction for Fairfax reflects the success of Fairfax’s transformation strategy which has created value for shareholders through targeted investment in high growth businesses, such as Domain and Stan, and prudent management of our media assets. The combination with Nine provides an exciting opportunity to continue to drive incremental value well into the future.”

“We are confident that the strength of the combined management team and staff will ensure the continuation of our quality journalism.”

Update: Screen Producers Australia CEO Matthew Deaner, cautioned that the announced merger shouldn’t affect the diversity of Australian content, particularly from the independent sector.

“We need strong media organisations in this country. Today’s announcement of the merger between Nine and Fairfax is an inevitable result of market forces and the Media Reform package that passed last year. However, any consolidation of media ownership should not reduce the diversity of Australian content on Australian screens. The screen production industry looks forward to the outcome of the Government’s content review, which was announced as part of Media Reform,” he said.

27 Responses

  1. If this take over goes ahead does this mean that more profits will be going to the US and not staying in Australia, as nine are are basically owned now by American Hedge Funds, so would think that it would be the same thing, think this is the reason I don’t watch so much on 9 these days knowing this is happening.

  3. How is this a merger it’s not its a takeover of Fairfax by nine . Fairfax will lose its identity it will be all under the nine brand.the end of quality journalism has disappeared with this takeover .how one organisation can own three radio stations and newspaper and tV station in one city is mind boggling.and that’s just in Sydney as he same will happen in Melbourne and Brisbane .any concentration of media will be bad .all his will do is force more people onto social media to get their news as no will trust the nine brand or news corp for their news

  4. Being from Perth and having to put up with Seven West Media’s grip on the news and paper is tiring to say the least. The constant cross promotions. Also I’ve noticed the tv journalist have replaced some of journalists from The West and now right the articles.

    There’s a good audio clip online of Peter Ford asking Basil Zempilas what will happen to him as it affects Basil’s breakfast radio 6PP who also has been brought out by Channel 9. With Basil being loyal to Seven Perth, you can’t see him moving!

  5. Merging ABC and SBS wouldn’t work, but if SBS can show ads, ABC should also be allowed to run ads, but only on ABC24 and on their other 2 channels to help cover their running costs, but only at the start and end of shows.

  7. Yeah not sure I want to see the Age website with cross promotions of Married at First Sight and the Block. Also how will the Green Guide be objective in reviewing Nine programs going forward?

  9. Time to merge SBS with the ABC and sell the SBS assets off and create a new commerical TV network. A huge cash injection for the government and less subsidies they need to pay the combined ABC/SBS in future. Really a no brainer it should have been done long ago. Fairfax a dud deal for nine.

    1. That would simply be more short-term thinking from the Right.

      The smarter thing would be to nationalise Nine Entertainment, thereby ensuring an ongoing revenue stream for the Government…

      😉

    2. Never happening. Ideology aside, there are laws against how many tv licences can be issued. The media reform that happen to allow for this takeover also included capping that number at 3 per market….

  11. And so the wheel has turned full circle, from when newspapers owned TV stations (Packer’s ACP and TCN9 & GTV9, Fairfax and ATN7, News and NWS9 & WIN, Herald-Sun & HSV7 to name but a few). And Nine has this much cash? Or will it all be done on borrowed money?

  12. Nick Falloon was one of Packers Lieutenants at Nine in 80/90’s and early 2000’s. He then left and went to TEN. Then when TEN was until Jamie Packer arrived in 2010. Then he was and still is at Fairfax as Chairman…..

  13. A “merger” where Nine shareholders get the majority of the stock, Fairfax shareholders get 0.33 shares for each share they own and Nine’s Hugh Marks and his team will run the business. Sounds like a takeover to me. Let’s face it Fairfax have been trying to sell their radio stations for over 5 years, and can’t find a buyer. The SMH and Age will now be printed by Newscorp and they are shutting down their newsprint business. This is all about Nine acquiring Domain and Fairfax’s online customers.

    1. Yeah from 2002 – 2010, though most of his time has been spent with Nine at various points over the years, including 1982 to 2001 when he was pretty much Kerry Packers right-hand man, has also (and may still) sat on the boards of Foxtel and Fox Sports

  15. So further concentration of media ownership. And every indication that Nine will continue to rationalise (i.e. decimate) the newspaper business, much as Fairfax itself has been doing over the past few years. And these are the same people who will argue that the ABC must be pruned or privatised in order to create “fair” competition. If any of their commercial enterprises had ever reacted to the changing media landscape by trying to produce a better product, then they might have an argument. But what they really want is for the ABC to be reduced to whatever level they decide is currently profitable while churning out their increasingly flimsy products. If the government is fine with allowing bigger and bigger chunks of the media to be concentrated in fewer and fewer hands, then they really need to step up and protect the ABC.

  16. With CBS (Ten) likely to restructure and introduce their new streaming service what will a Nine takeover do with Stan, the changing preferences of viewers with new generation Smart devices is now pushing along the restructuring of FTA in Australia as the competition ramps up. commercial TV has to face up to it’s own change of technology after decades of having a self serving broadcasting duopoly run by Mr Packer and Rupert Murdoch.

    1. With Nine and Fairfax having 50% of STAN (both putting in $50 million in 2014), I would think not much will change, cannot see them changing the name either, STAN has name recognition now. Perhaps the company name of StreamCo may change however I see very little else happening, maybe a revamp for 9Now will be about it. Depends how much Nine really learned from all the streaming and catch-up stuff that happened with Love Island Aust, if it set the benchmark like they say then I suspect a lot more will play out via that model (and maybe sharing shows between 9Now and STAN after first runs).

    2. Laughs. Self serving? The difference between Packer/Murdoch and the ABC/SBS is that one was/is a commercial operation and the other is a government leech. Yes they are both biased but hey if you disagree with Murdoch media simply vote with your wallet. Does those who hate the far left tripe served on the ABC/SBS have the same freedom not to pay for it. Nope!

  19. Well guess that is a better merger than Seven West Media and Fairfax as seemed the go back in April when Nine bowed out. Interesting with it starting in 2019 though, as that is also when Seven West Media and Nine start sharing the playout hub in Sydney.

    As per TV Tonight:

    https://tvtonight.com.au/2018/02/seven-cuts-jobs-at-broadcast-centre-ahead-of-new-plan-with-nine.html

    Seven West Media and Nine Entertainment Co. have entered into an exclusive arrangement to form a joint venture for the playout operations of the two organisations. The combined operations would provide economies of scale by consolidating infrastructure for the two businesses, and create an industry facility company able to service other broadcasters and companies.

    Interesting times ahead.

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