Bauer Rumoured To Be In Talks With Seven Over Pacific Buyout

Bauer Rumoured To Be In Talks With Seven Over Pacific Buyout
SHARE
THIS



Bauer Media’s rumour mill is running overtime, with reports this morning of a potential merger with Pacific Magazines in order to quash local competition and cut costs.

According to The Australian, Bauer has approached Seven West Media with regards to buying out Pacific’s division, with The Oz claiming an unsolicited approach was made in recent months, despite talks between Bauer and Seven not progressing any further as of yet.

Sources are apparently reporting that only a handful of Pacific’s titles were profitable, meaning a merger would result in a major cost collaboration, while the new print behemoth would boast a stronger audience spread for advertisers.

Both Pacific and Bauer declined to comment on the speculation.

Per The Oz, this is not the first time talks have come up between the two companies, but that the pricing of synergies held them back from advancing in discussions. Pacific has also recently heavily invested in its digital front, so Seven would presumably want any acquisition price tag to reflect this asset.

The move would merge a number of successful publications from both companies, including Australian Women’s Weekly and Woman’s Day from Bauer, as well as the likes of New Idea and Better Homes and Gardens from Pacific.

Former CEO Pete Zavecz made the move this year to take back digital ownership from Yahoo to reclaim more control over its online editorial and commercial arms, leading it to reach a unique digital audiences of two million after 13 consecutive quarters of overall audience growth.

Pacific Magazines recently appointed new CEO Gereurd Roberts after the sudden departure of Zavecz in August. Bauer’s chief Nick Chan is, however, very familiar with Seven’s publishing arm, having been at the helm for 10 years until being promoted to Seven’s chief operating office in 2013.

Bauer has lost a few titles in recent times, including infamous Cleo in January, Women’s Fitness, Zoo Weekly, Madison and Grazia. Meanwhile Pacific has been enduring a rocky period of its own, cutting and selling titles of Prevention, Your Garden, K-Zone, Total Girl, while switching to pure digital on names like Practical Parenting and Bride to Be.

Bauer also recently underwent a streamline of operations and executive shuffle, with reports of additional titles closing. The year to June 30 2016 saw Pacific’s earnings before interest and tax dropped over 50 per cent to $9 million, while revenue dropped by 8.6 per cent to $201 million.

Per The Oz, industry sources believe Bauer needs to make this acquisition if it wants to maintain its place in this market as both advertising dollars and circulation figures dip.

 

Please login with linkedin to comment

Latest News

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
**FILE*** A Thursday, Oct. 21, 2010 file photo the Sydney Head Office of Network Ten in Pyrmont, Sydney. Network Ten's Wake Up program and its early, morning and late news will be axed from Friday. (AAP Image/Lee Besford) NO ARCHIVING
  • Advertising
  • Media

Network Ten And MCN Reaffirm Sales Agreement Following CBS Sale

Network Ten and Multi Channel Network (MCN) have today reaffirmed that the sales representation agreement, which sees MCN manage the advertising interests for TEN, ELEVEN, ONE and the online catch-up streaming platform tenplay, will continue. Since the agreement was made in 2015, the Network Ten and MCN trading relationship has been an outstanding success. In […]

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 […]

AI – To Join It Or To Beat It
  • Media
  • Opinion

AI – To Join It Or To Beat It

I'm afraid we can't let you read this piece Dave! That's a joke about A Space Odyssey 2001, young B&T readers.

Opinion

by B&T Magazine

B&T Magazine
AnalogFolk Opens In Shanghai
  • Advertising

AnalogFolk Opens In Shanghai

AnalogFolk has opened in Shanghai and, as B&T's trusty Funk & Wagnalls atlas tell us, is somewhere near Wollongong.