Nine And Southern Cross Say No Deal Has Been Struck Despite Merger Speculation

Little girl whispers into her brother's ear who has a shocked expression on his face. Horizontal shot. Isolated on white.
SHARE
THIS



Nine Entertainment has commented on speculation in the media regarding merger discussions with Southern Cross Media, according to a statement on the Australian Securities Exchange (ASX).

Nine confirmed that “from time to time over the past few years there have been discussions with Southern Cross Media and various commercial and broader business transactions”.

“Nine Entertainment Co and Southern Cross Media have not reached any agreement on any transaction. Should an agreement be reached at any time, NEC will make an appropriate announcement to the market in accordance with its disclosure obligations.”

Southern Cross Media has also noted on ASX that despite The Australian’s report entitled ‘Nine Entertainment, Southern Cross Austereo in merger talks’, “the company has not received or made any merger proposal”.

The Oz reported that the two companies have held direct negotiations towards a $2.2 billion merger that does not require changes to media ownership laws. While a full merger would breach the population reach as it would stretch Nine’s licence area to over 75 per cent of the country, advisers believe the deal could unfold as a two-step acquisition, the paper reports.

Per reports, Nine would buy Southern Cross’s metropolitan radio assets and stick its remaining regional assets in a holding entity, where they would sit until Turnbull and his government shake up the law to allow such a move.

If, as expected the government scraps the reach rule, which blocks the merging of metropolitan and regional TV networks, then Nine could then get full control of TV assets under conditions precedent in the deal.

Combined radio and television resources would allow for an abundance of cross promotion of programming and the use of talent across both media. Talks have been held sporadically between the two sides since early 2013, when the companies abandoned a secret $4 billion merger deal.

But merger talks have apparently been ongoing since before the departure of Nine chief exec David Gyngell, who this week was replaced by former Nine non-exec director Hugh Marks.

Reports coming out of Fairfax suggest takeover talks between Nine and Southern Cross have stalled in the past fortnight as the price of the latter spiked.

In a very ‘Who Weekly’ fashion, The Oz claims that sources close to the negotiations have revealed that contrasting views on the value of each company and their respective earning prospects have proved to be the biggest roadblock to signing on a dotted line.

“This is a 50-50 chance,” a party to the deal told The Australian.

It comes after disappointing radio ratings for 2DayFM this week, with Southern Cross Austereo admitting it got it wrong with 2DayFM breakfast, hence the added urgency to the talks.

Asked by Fairfax if talks were closing on a takeover agreement, Southern Cross chairman Peter Bush said it was “just one of the myriad things out there”.

“Look, potentially, this has been going round and round and round and under the current media laws and everything else, I don’t know whether the Nine board or shareholders have got an appetite for radio I don’t know whether our shareholders have got an appetite for free- to-air TV.”

Please login with linkedin to comment

#HappyGiving Advertising Standards Bureau Radio

Latest News

Ben & Jerry Goes Political In ‘Unfudge Our Future’ Campaign
  • Campaigns

Ben & Jerry Goes Political In ‘Unfudge Our Future’ Campaign

Ben & Jerry’s has unveiled their latest limited-edition flavour: Unfudge our Future, to urge Australia’s leaders to tackle climate change by making fossil fuels history. The launch aligns with the Federal Government’s preparation of a history-making economic reboot in the upcoming October Budget, with Ben & Jerry’s joining forces with 350.org Australia and the Climate […]

Celeste Barber Encourages Aussies To ‘Get Your Jugs Out’ In Hilarious BRITA Campaign
  • Campaigns

Celeste Barber Encourages Aussies To ‘Get Your Jugs Out’ In Hilarious BRITA Campaign

BRITA Australia is today proud to reveal its latest national campaign, ‘Get Your Jugs Out’, starring Australian comedian, Celeste Barber. The quirky campaign encourages Australians to make the switch from bottled water to great tasting filtered tap water, using a BRITA filter jug at home, with the creative brought to life with Celeste’s cheeky, yet relatable sense of humour.

Enero Posts Net Revenue Increase Of 4.9%
  • Media

Enero Posts Net Revenue Increase Of 4.9%

Forget 2020's plagues, pestilence and famine says Enero, as balance sheet comes out with sweet smell of potpourri.

by B&T Magazine

B&T Magazine
You Can Now Limit Who Can Reply To You On Twitter
  • Technology

You Can Now Limit Who Can Reply To You On Twitter

Twitter is saying ‘bye to the reply guys’, allowing users to control who can reply to their Tweets. ‘Reply guys’ have long been an issue on the social media app, where users (often anonymous) frequently comment on posts in an annoying, condescending or otherwise unsolicited manner. Twitter first put these users on notice in May […]

Home Office Set Up for Webinar and Teleconference whilst respecting the lockdown due to the corona virus outbreak
  • Media

The Virtual Conference Network Launches In Australia

The Virtual Conference Network, an Australian-founded disruptive alternative to video conferencing, has today launched to provide risk mitigation, improved flexibility, new post-event revenue streams, and optimal cost-effectiveness to conference organisers, business leaders and peak bodies. With over 20 years of first-hand experience with the high-risk and costly ways of delivering traditional conferences, co-founders Alex Paine […]

Medallia Appoints Heather Paterson As ANZ Country Manager
  • Advertising

Medallia Appoints Heather Paterson As ANZ Country Manager

Medallia has appointed Heather Paterson as its new ANZ country manager to drive further growth across Australia and New Zealand. With a strong sales performance and leadership background, Paterson joins Medallia as ANZ country manager following more than seven years with leading SaaS financial technology provider, Intralinks, where she was most recently director for Asia […]

IAS And Channel Factory ‘Channel Science’
  • Technology

IAS And Channel Factory ‘Channel Science’

Integral Ad Science (IAS) today announced the launch of “Channel Science”, an industry-leading partnership between Channel Factory and IAS. The Channel Science solution helps advertisers to leverage both companies’ technologies through a single product to ensure their YouTube campaigns are brand-safe, brand-suitable, and performance-optimized.  More than ever before, advertisers are searching for ways to streamline their media buying and improve […]

by B&T Magazine

B&T Magazine
Playing
  • Technology

Google Presses Play On Programmatic Audio

If CV-19's given us anything, it's more podcasts than you could listen to in 1000 lifetimes. Monetise yours with this.

by B&T Magazine

B&T Magazine