ACCC Says oOh!Media/APN Merger Not A Done Deal Yet And Warns Of Price Hikes For Agencies

ACCC Says oOh!Media/APN Merger Not A Done Deal Yet And Warns Of Price Hikes For Agencies
SHARE
THIS



In arguably the biggest media surprise for 2016, yesterday two OOH arch-rivals – oOh!Media and APN  – announced they had plans to merge and create a $1.6 billion outdoor behemoth and carve up Australia’s $12 billion a year outdoor market.

However, media reports this morning suggest the Australian Competition and Consumer Commission (ACCC) will be keeping a keen eye over any potential marriage due to the very real threat of reduced competition in the outdoor space and increased costs. The AFR has today reported that the merged company could control more than 55 per cent of Australia’s outdoor market.

In its submission to the Australian Stock Exchange yesterday, the merger plans show the business would be worth an estimated $1.6 billion and make it the fifth biggest media entity in Australia behind REA, Seek, Carsales and Fairfax.

If the merger gets the go ahead, APN shareholders will control 55 per cent of the company and oOh!Media shareholders 45 per cent. Each of the two will have four members on the new board.

On top of reduced competition, a likely merger would possibly mean advertisers would need to pay more to use the company’s assets. Good news for shareholders, less so for the rest of us.

The merger would also reduce the company’s overheads as it shared assets and reduced staff numbers.

Also, both businesses investment in digital has enabled them to get much more revenue from a single outdoor site by playing multiple ads. It’s been reported that a digital billboard can make as much as five times more than the old-fashioned static ones.

One thing that any merger does have in its favour regarding claims it would be anti-competitive is the smallish size of outdoor spend when compared to other medias. Even if the merger was approved by the ACCC and the new business did control 55 per cent of Australia’s outdoor market that still only represents about 2.5 per cent of all ad dollars spent in Australia.

And, as The AFR’s Tony Boyd wrote in a column today, we can probably expect a lot more media mergers as the traditional players fight the Facebook/Google juggernaut. As Boyd wrote: “The ACCC is likely to find that its review of the advertising industry prompted by the APN Outdoor and oOH!Media merger will be the first of many in the sector over the next 12 months.

“The drums are beating in relation to merger and acquisition activity. Irrespective of the progress of media law reform through the federal parliament companies are talking to each other with a view to merger activity.

These discussions are being driven by the same forces unleashed by Google and Facebook,” he said.

Please login with linkedin to comment

Latest News

Projucer Unveils Content Production Slate For 2018
  • Media

Projucer Unveils Content Production Slate For 2018

Australia’s purveyor of original programming, Projucer, has announced an array of new multi-platform TV shows, digital content and exponential production studio growth. From Jack Stein (yes, Rick Stein’s son) taking British cuisine across 10 different countries on Inside the Box, to a Veterinarian operating out of the remote Western Australian desert for Desert Vet, Projucer […]

Blue 449’s Sonia Pitchuev Recognised In Google’s Performance Honours Comp
  • Advertising
  • Media

Blue 449’s Sonia Pitchuev Recognised In Google’s Performance Honours Comp

Blue 449 is celebrating Sonia Pitchuev’s recognition in the Megastar category of the Google Performance Honours. Google Performance Honours is a competition aimed at spotlighting our next media superstars and highlighting the online campaign work by agencies across Australia and New Zealand. Each individual competes on their own merits by submitting a case study of […]

Salesforce Launches Data Studio With Southern Cross Austereo & Mamamia
  • Marketing

Salesforce Launches Data Studio With Southern Cross Austereo & Mamamia

Salesforce has announced the launch of a data sharing platform with partners Southern Cross Austereo (SCA) and Mamamia designed to connect data owners with buyers and create new marketing opportunities for audience discovery, sharing and activation. Part of the Salesforce Marketing Cloud, Salesforce Data Studio enables marketers to expand targeted reach with valuable audiences, provides […]

Pedestrian.tv Partners With Domain To Launch Home Content Vertical
  • Media

Pedestrian.tv Partners With Domain To Launch Home Content Vertical

Aussie youth-focused publication Pedestrian.tv has bolstered its lifestyle offering with the launch of its Home vertical, with Domain signing on as launch partner. Pedestrian Home will deliver content focused on homewares, hacks for sprucing up your space, a peep inside the amazing homes of well-known Aussies, as well as covering the real estate news and […]

Zenith Makes Two Senior Appointments
  • Advertising
  • Media

Zenith Makes Two Senior Appointments

Kylie Sneddon & Mark Johnson stamped Zenith 'movers & shakers' after promotion. Not like to their forehead or anything.

Photoplay Signs Director Frazer Bailey
  • Media

Photoplay Signs Director Frazer Bailey

Boutique production company Photoplay has announced the signing of award-winning comedy performance director Frazer Bailey for representation in Australia and New Zealand. Bailey won Gold for Direction at the BADC Awards for the hilarious Air Asia escapism campaign ‘Come Back Refreshed’ via Publicis and Silver for Millionaire’s Run ‘Prince of Nigeria’ through Brainheart. He has […]

Cornerstone OnDemand Appoints FORWARD Agency As PR Partner
  • Marketing

Cornerstone OnDemand Appoints FORWARD Agency As PR Partner

FORWARD Agency announced that they have been appointed by Cornerstone OnDemand as its PR agency of record for Australia and New Zealand. Cornerstone provides cloud-based human capital management software to help organisations realise the potential of the modern workforce. The appointment will see FORWARD working across all of Cornerstone OnDemand’s PR activities, including media relations, […]

Brisbane Agency P4 Group Celebrates Growth With A Rebrand
  • Marketing

Brisbane Agency P4 Group Celebrates Growth With A Rebrand

Brisbane-based PR and marketing agency P4 Group has today launched a new look and feel to align with its recent growth, with its team and client base almost doubling in the past year. Expanding its service offering to genuinely deliver on the integrated agency promise, P4 Group has grown its team of 15 to 26 […]

Retail Software Player Vend Moves Into AI As Part Of Platform Revamp
  • Marketing
  • Technology

Retail Software Player Vend Moves Into AI As Part Of Platform Revamp

Point-of-sale (POS) retail software company Vend has taken its first steps into AI to help retailers grow and compete as part of a major platform refresh. Dott aims to help retailers make better decisions about their stores and how to grow, bringing the much talked-about promise of AI to life for retail. Neither male nor […]

Enough With Your Shitty Videos Already
  • Opinion

Enough With Your Shitty Videos Already

Is a cat wearing a party hat filmed on your phone the extent of your video production? Read this for all our sakes.

Opinion

by B&T Magazine

B&T Magazine
Bauer’s Christian Fricke Resigns As MD Of Xcel Media
  • Media

Bauer’s Christian Fricke Resigns As MD Of Xcel Media

Further to today’s news that Bauer Media will close three of its magazine titles, the publisher has announced the resignation of Christian Fricke, managing director of Bauer Xcel Media. According to a statement sent to media, Fricke, who had been in the role a mere 18 months, will return to Germany for family reasons. Commenting on Fricke’s departure, Bauer Media […]

Former Aussie Cricket Captain and photography enthusiast Steve Waugh for SnapSydney.  Picture: John Appleyard
  • Campaigns
  • Media

News Corp Expands ‘Snap Australia’ Campaign To Regional Titles

News Corp’s award-winning Community Media’s ‘Snap Australia’ campaign continues to build momentum. ‘Snap Australia’ is a social media movement that celebrates what Aussies love about where they live. The feel-good factor of the initiative has extended into each capital city and into News Regional Media, with an additional 18 regional publications joining the initiative. Today […]

Virgin, Yellow Brick Road & GoSwitch Flock To Sports Content Platform PlayersVoice
  • Marketing
  • Media

Virgin, Yellow Brick Road & GoSwitch Flock To Sports Content Platform PlayersVoice

Six weeks after its launch, sports content platform PlayersVoice is winning the hearts and minds of consumers and brands. Established as a platform for rich and raw first-person sports storytelling, PlayersVoice has created an environment where elite sportspeople feel comfortable sharing their thoughts, hopes, dreams and fears, shining a light on ‘The Human Behind the […]

Red Agency Grows Partnership With The Whiddon Group
  • Marketing

Red Agency Grows Partnership With The Whiddon Group

NSW aged care specialists The Whiddon Group – a longstanding PR and social client of Red Agency – have widened their remit to include content, paid social and SEO in line with the evolution of the aged care sector. Whiddon, which celebrates its 70th birthday this year, delivers care services that enable quality of life […]

Image lead story Toby’s Estate Taps Influencers To Launch First Concept Coffee Range
  • Campaigns
  • Marketing

Toby’s Estate Taps Influencers To Launch First Concept Coffee Range

Toby’s Estate Coffee Roasters has launched its first ever concept coffee range – the Underdog Series. The series shines a spotlight on the world’s relatively unknown, but emerging specialty coffee producing regions. The Australian business leads the local market in selling specialty coffee from regions including Uganda, Malawi, Mexico and Myanmar. For the first time, […]

Image lead story Our Revolution Shows Off Packaging For New Smallgoods Player The Smokeman Brothers
  • Marketing

Our Revolution Shows Off Packaging For New Smallgoods Player The Smokeman Brothers

Locally-sourced Australian brand The Smokeman Brothers, has hit shelves with packaging mastered by independent creative agency Our Revolution. The Smokeman Brothers is different to your average deli meat. It is a range of premium crafted meats, made in Australia, and authentically smoked using sustainable timber sourced from the Victorian Highlands and The Riverina regions. Our […]

Yarra Trams & Icon Agency Introduce ‘Tram Coach’ For New Passenger Safety Campaign
  • Advertising
  • Campaigns

Yarra Trams & Icon Agency Introduce ‘Tram Coach’ For New Passenger Safety Campaign

Yarra Trams has appointed Icon Agency to deliver a new passenger safety campaign, following a competitive three-way pitch. The campaign aims to reduce the incidence of slips, trips and falls on trams via Melbourne’s latest safety ambassador, ‘Tram Coach’. Commencing today, Tram Coach will be travelling the Yarra Trams network throughout the week. His mission […]

The Red Republic Appoints New General Manager
  • Marketing

The Red Republic Appoints New General Manager

The Red Republic has strengthened its management team with the appointment of Mai Aristoteli (pictured above) as general manager. Aristoteli joins The Red Republic from Talk PR in London, where she has worked for nine years as a board director. The appointment of Aristoteli follows The Red Republic managing director Lynn Mooney’s relocation to head-up […]

PR Deadlines Inks Deal With GlobalCom PR Network
  • Marketing

PR Deadlines Inks Deal With GlobalCom PR Network

Sydney-based agency PR Deadlines has extended its global reach after inking a partnership agreement with the GlobalCom PR Network. The agreement gives PR Deadlines’ clients access to some 70 independent agencies covering all European Union states, as well as 60 more in countries worldwide. In turn, clients of affiliated agencies will have access to PR […]

Fintech Start-up InstaReM Names Aussie Cricketer Matthew Wade As Brand Ambassador
  • Marketing

Fintech Start-up InstaReM Names Aussie Cricketer Matthew Wade As Brand Ambassador

InstaReM, which offers international money transfers to individuals and businesses, has signed on Australian wicketkeeper Matthew Wade as the sports face of the brand. InstaReM lists Australia as its founding market, having begun life here in 2014. Since the company’s modest start in Australia, InstaReM has since successfully spread its wings to other corridors by […]

Australia Is Diverse… Does Your Brand Have An Inclusive Digital Presence?
  • Marketing
  • Opinion

Australia Is Diverse… Does Your Brand Have An Inclusive Digital Presence?

As Australia continues to grow and the population becomes more ethnically diverse, it is important that marketers ensure digital environments are more inclusive, especially for those who don’t speak English as a first language, writes Siteimprove’s Haley Doel (pictured below). Having a readable and accessible website is no longer just a high priority for large […]

Opinion

by B&T Magazine

B&T Magazine
Pepsi MAX Teams Up With PHD & Time Out For New Data-driven Campaign
  • Advertising
  • Campaigns

Pepsi MAX Teams Up With PHD & Time Out For New Data-driven Campaign

Pepsi MAX has partnered with PHD and Time Out to not only inspire Australians, but also enhance their ability to ‘MAX’ out their summer this year. Through the use of a live dynamic data feed, consumers will be served ads by the brand on events taking place around them that are relevant to their personal […]