UPDATE ON MACQUARIE FAIRFAX RADIO DIVESTMENT
December 10th 2007 20:57
Macquarie Media Group and Fairfax Media Ltd have agreed that the acquisition by Fairfax Media of the nine commercial radio licenses serving five regional license areas in South Australia and Queensland and the related narrowcasting licenses serving these states will not proceed.
The acquisition was conditional on a number of issues including regulatory approval. While Macquarie media has made progress on these conditions, both parties have agreed not to continue working to complete the acquisition.
Mark Dorney, ceo of Macquarie Media Group, said, “This acquisition was independent of the Southern Cross Broadcasting acquisition by us and the subsequent on-sale of assets to Fairfax Media, which was completed on November 9, 2007.”
The above ASX announcement of yesterday prompted detailed coverage in Australia’s major metro newspapers this morning.
The Australian reported that Fairfax’s $40 million sale of the nine radio stations to Macquarie Media Group, announced when the two groups revealed their $1.35 billion carve-up of Southern Cross Broadcasting, has fallen over after the deal ran into problems with corporate and media regulators.
Serious problems with the proposed deal were foreshadowed in The Australian 11 days ago, in the midst of tough negotiations with the Australian Communications & Media Authority and the Australian Competition & Consumer Commission about which stations Macquarie would be allowed to keep.
The Australian this morning said, “This option was allowed by the group to expire on Sunday, after Macquarie was unable to negotiate a solution with the Australian Communications & Media Authority about some licences, particularly those in South Australia’s Spencer Gulf and Port Lincoln regions.”
The Australian added, “However, it is understood Fairfax will now be forced to divest one of the former Rural Press stations based in Ipswich, which effectively shares the Brisbane market with 4BC and 4BH.”
Fairfax’s Sydney Morning Herald today confirmed that this Ipswich station will have to go.
The Herald said, “(Fairfax) will have to sell its Ipswich station, River 94.9, to appease competition concerns. There are no plans to bid for any of the 12 regional stations Macquarie is forced to divest.”
- From MediaBlab by Petre Olszewski via Factiva
The acquisition was conditional on a number of issues including regulatory approval. While Macquarie media has made progress on these conditions, both parties have agreed not to continue working to complete the acquisition.
Mark Dorney, ceo of Macquarie Media Group, said, “This acquisition was independent of the Southern Cross Broadcasting acquisition by us and the subsequent on-sale of assets to Fairfax Media, which was completed on November 9, 2007.”
The Australian reported that Fairfax’s $40 million sale of the nine radio stations to Macquarie Media Group, announced when the two groups revealed their $1.35 billion carve-up of Southern Cross Broadcasting, has fallen over after the deal ran into problems with corporate and media regulators.
Serious problems with the proposed deal were foreshadowed in The Australian 11 days ago, in the midst of tough negotiations with the Australian Communications & Media Authority and the Australian Competition & Consumer Commission about which stations Macquarie would be allowed to keep.
The Australian this morning said, “This option was allowed by the group to expire on Sunday, after Macquarie was unable to negotiate a solution with the Australian Communications & Media Authority about some licences, particularly those in South Australia’s Spencer Gulf and Port Lincoln regions.”
The Australian added, “However, it is understood Fairfax will now be forced to divest one of the former Rural Press stations based in Ipswich, which effectively shares the Brisbane market with 4BC and 4BH.”
The Herald said, “(Fairfax) will have to sell its Ipswich station, River 94.9, to appease competition concerns. There are no plans to bid for any of the 12 regional stations Macquarie is forced to divest.”
- From MediaBlab by Petre Olszewski via Factiva
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