Tuesday, October, 15, 2019 05:43:11

Macquarie Media had in December 2018 announced that it was in preliminary stage of its talks with Nine Entertainment.

Nine Entertainment, an Australian media company, recently announced a proposal to purchase the remaining stake in Macquarie Media, an Australian media company that operates radio stations, for a valuation of A$275.4 million, which would consolidate the broadcaster’s spot in radio.

According to reliable sources, earlier, the media companies were not allowed to have businesses in all the three sectors (television, radio and print), but the rules were altered to help the industry compete with global competitors like Netflix and Amazon Prime services.

Apparently, Fairfax Media, a part of Nine Entertainment, made an all-cash offer of A$1.46 for each Macquarie Media share, which is less by 16.3% to Macquarie’s last closing price. However, the directors of the radio company, recommend their shareholders to consider Nine Entertainment’s offer, unless they get a superior offer.

As per reports, Macquarie Media had in December 2018 announced that it was in preliminary stage of its talks with Nine Entertainment.

Reportedly, Nine Entertainment currently owns a 54.4% stake in Macquarie Media, which it bought for $1.6 billion through Fairfax in 2018. Additionally, the merger of these two companies would save an annual cost of A$10 million according to Hugh Marks, CEO, Nine Entertainment.

For the uninitiated, Nine Entertainment is Australia’s most popular brands which curates and creates quality content, accessible to consumers anytime. Recently Nine Entertainment was in the headlines for merging with Fairfax Media, becoming the nation’s largest locally owned media firm with investments branching over television, print, radio, digital, video on demand and real estate classifieds.

The company’s assets include the Nine Network, major banners being The Age and Australian Financial Review, The Sydney Morning Herald and digital properties such as 9Honey, nine.com.au, CarAdvice and Pedestrian.TV.

Source Credit: https://in.reuters.com/article/macquarie-media-m-a-nine-entmt/australias-nine-entertainment-offers-to-buy-rest-of-macquarie-media-idINKCN1V205K