Reports: Fairfax Set To Snub $2.2 Billion TPG Offer

Reports: Fairfax Set To Snub $2.2 Billion TPG Offer
SHARE
THIS



US private equity firm TPG’s $2.2 billion offer for Fairfax Media’s mastheads and Domain real estate site looks dead in the water only three days after it was announced, with reports shareholders have gone cold on any potential sale.

Over the weekend, TPG offered to buy the company’s print mastheads including The Age, Sydney Morning Herald, Brisbane Times, The Australian Financial Review and its highly prized real estate site Domain.

It has been reported that Domain is the sticking point of any potential deal and has been hugely undervalued in the TPG offer.

According to reports in Fairfax Media today, the demerger was “highly unlikely” to go ahead in its current form.

In another twist, details of TPG’s offer have been leaked to media and infer any takeover would protect journalists and quality content – ironic as Fairfax Media staff are currently on a seven-day stoppage over job cuts to editorial newsrooms.

TPG’s letter to Fairfax has been seen by journalists at rival The Australian who have reported it said: “We value the important role that Fairfax contributes to communities through its iconic mastheads, and recognise the maintenance of premium content and journalistic integrity are critical to Fairfax’s ongoing success.”

Apparently, shareholders disquiet over the offer is to do with TPG’s attempts to break-up the 176 year old business – taking the chief mastheads and Domain but leaving behind other Fairfax owned assets including its New Zealand operations, Macquarie Radio and SVOD provider Stan.

Patrick Potts, an analyst at Legg Mason Martin Currie, which owns 6.1 per cent of Fairfax told The Australian Financial Review: “The current deal basically cherry picks the best assets and Fairfax shareholders are left with assets whose value is hard to work out,” Potts said, arguing a better deal would be if TPG offered to buy the business in its entirety.

“It’s an easy thanks but no thanks,” Lee Mickelburough, head of Australian equities at Henderson Global Investors, which owns five per cent of Fairfax, told the masthead.

Please login with linkedin to comment

Latest News

Comexposium Takes Over NZ Partner MTS To Become Largest Trans-Tasman Events Group
  • Marketing

Comexposium Takes Over NZ Partner MTS To Become Largest Trans-Tasman Events Group

Marketing events group Comexposium has absorbed its New Zealand joint venture partner MTS to deliver an expanded event solutions business across the Trans-Tasman. The deal will see Ryf Quail (pictured above) return to Sydney to lead Comexposium Australian and Kiwi team, while his current MTS team remains in place as Comexposium employees. While the business […]

Eyeota Kick-Starts 2018 With $15.6 Million In Additional Funding
  • Marketing

Eyeota Kick-Starts 2018 With $15.6 Million In Additional Funding

Audience data provider Eyeota has announced a $15.6 million Series B capital raise to spearhead additional growth in 2018. The company was founded simultaneously in Singapore, Australia and Europe in 2010, and has remained independent and enjoyed strong growth locally, as well as launching into the US. Peter Hunter (pictured above), Eyeota’s general manager for […]

Poem Wins Four New Clients
  • Marketing

Poem Wins Four New Clients

Sydney-based PR and social agency Poem has announced it has won four new clients following another strong year of growth. The four clients are Property NSW (The Rocks and Darling Harbour), Fantastic Furniture, Ovolo Hotels and Purpose (a conference on purpose-driven business). Poem co-founder Matt Holmes said: “We’ve hit a nerve with clients who are […]

Facebook Makes Another News Feed Change
  • Media

Facebook Makes Another News Feed Change

Social media behemoth Facebook has announced its second major update for News Feed to make sure the news people see, while less overall, is high quality. This week, Facebook announced that the platform will launch a small test in the US focused on prioritising news from publishers that users find trustworthy. Facebook is also exploring ways […]

Attention! B&T’s Inaugural Bootcamp Launches!
  • Advertising
  • Marketing
  • Media
  • Technology

Attention! B&T’s Inaugural Bootcamp Launches!

B&T announces its new industry bootcamp! And, if you're like us & didn't know anything about it, all's revealed here.

by B&T Magazine

B&T Magazine
Domain Boss Antony Catalano Exits
  • Media

Domain Boss Antony Catalano Exits

Mystery surrounds Domain boss's surprise exit, although the Mystery Machine nor a talking dog not spotted at Fairfax.

PHOTOPLAY Offers A Ghost Train Ride Like No Other At Sydney Festival
  • Media

PHOTOPLAY Offers A Ghost Train Ride Like No Other At Sydney Festival

Jasmin Tarasin, director at boutique production company PHOTOPLAY, is inviting invites audiences to take a trip through the inner-workings of the mind in ‘Ghost Train’, her latest multi-sensory VR project set to feature at this year’s Sydney Festival. Working in collaboration with musician and co-creative director Jonnine Standish, Tarasin’s uniquely immersive ‘Ghost Train’ is a […]

March One To Rebrand Fundraising Institute Australia
  • Marketing

March One To Rebrand Fundraising Institute Australia

Independent advertising and branding agency March One has been appointed to oversee the rebrand and repositioning of Fundraising Institute Australia (FIA). FIA is the national peak body representing professional fundraising in Australia. It was established to advance advocacy and professional standards, and has identified the need to better promote its role as the industry self-regulator, […]

Victorian Government Launches VR Bushfire Experience Via The Fuel Agency
  • Advertising
  • Campaigns
  • Technology

Victorian Government Launches VR Bushfire Experience Via The Fuel Agency

As part of its summer fire campaign, the Victorian government has launched a virtual reality (VR) bushfire experience and content series via The Fuel Agency. The VR experience places the user in the midst of a large bushfire, and is designed to encourage people to leave early on high-risk days before it’s too late. The […]

Local Ad Tech Company VeNA Partners With RugbyPass
  • Advertising
  • Media
  • Technology

Local Ad Tech Company VeNA Partners With RugbyPass

ad tech company VeNA has signed an exclusive reseller partnership covering Australia and New Zealand with digital rugby network RugbyPass. Across Asia and parts of Europe, RugbyPass is the exclusive digital rights holder and over-the-top broadcaster for live rugby, including the Super Rugby, the Rugby Championship and autumn internationals, the Six Nations, the Aviva Premiership, […]