Offer made on Southern Cross TV stations
New development over the future of SCA regional television stations.
- Published by David Knox
- on
- Filed under News
An unexpected offer has been made for Southern Cross Austereo’s regional television stations.
Australian Digital Holdings TV, which previously backed Alan Jones digital talk show, has put in a bid, the Australian Financial Review has reported.
It is believed to be in the vicinity of $15m.
“We have made an offer and are awaiting their decision,” ADH confirmed in a statement. “Revenue is still strong for free-to-air regional television, despite the pressures of the times, and with improved cost-controls and investment in key markets, the group sees a good future for the licences and improved TV services for the regions.”
ADH has engaged 333 Capital and law firm Squire Patton Boggs while former Seven West Media commercial director Bruce McWilliam has been advising.
Chair Maurice Newman has been working with the company’s co-founder Jack Bulfin and former Seven News director Jason Morrison on a deal to buy the network, slash content costs and create local news shows.
In 2023, James Packer invested in ADH TV, although the total value is unknown.
Jones is said not to be involved in the SCA bid.
Southern Cross Austereo, led by CEO John Kelly (pictured), was navigating a takeover bid from ARN and private equity investor Anchorage Capital, but it was abandoned mid year.
7 Responses
” a deal to buy the network, slash content costs and create local news shows”. To quote someone elsewhere “Tell him he’s dreaming”.
Whilst 10 and SCA have an ‘open-ended’ agreement for content supply each need the other, and as with Nine/WIN, let’s see who blinks first in lower content fees.
To “create local news shows” actual studios would have to be built, equipped and staffed. SCA has facilities in Hobart and possibly Port Pirie if it hasn’t already been gutted since it ended its News in 2023. Elsewhere would be a relocation and fitout. Won’t happen.
SCA wish to exit the free TV market to concentrate on their core business – audio. Be it radio or podcast. They’ll bargain for a better price but shouldn’t look a gift horse in the mouth.
Prime Media was reportedly worth $132 Million when Seven took over Prime7/GWN7 a few years ago, which suggest there’s still some (albeit, diminishing) value in regional TV.
However, SCA’s regional TV division consists mostly of Ten affiliates and the few remaining Seven affiliates which haven’t already become network O&Os.
Also take into consideration that Northern NSW (which at last check, was the most populous TV market outside the five main metros) won’t be part of this deal due to SCA selling Ten affiliate NRN to WIN in 2017 + Seven and Nine already owning their presences there. So with all those factors in mind, I’d probably guess somewhere around the $50-75 Million mark might be closer to the actual market value of SCA regional TV.
With the Northern NSW Ten affiliate + the Nine affiliates for most other key regional markets, one assumes WIN’s regional TV operations (even before adding Crawfords and i98/C91.3 into the mix) would likely be worth considerably more than SCA’s.
If I was SCA (I’m not), I’d accept the bid and run. Linear TV and Radio are two media that have passed their prime with streaming taking over.
$15 million, I’d have thought it’d be work at least $100 million, a technically national television network and don’t forget it also has the Crawford Productions library (whatever Daryl Somers is making from the streaming service he started with his productions, I’m sure they’d have made the exact same amount… if not more because they have so many classic shows in different genres)
WIN TV has the Crawfords library. As far as I know Somers Enterprises has no connection to Southern Cross Austereo.
Oh okay, got the two mixed up.
And I don’t think Somers Enterprises has any connection either, I was just thinking Southern Cross TV (which I mistook for WIN) would be worth more than $15 million.