Nine this morning announced an offer to acquire the rest of radio broadcaster Macquarie Media.
The media company inherited the majority shareholding in Macquarie Media following its merger with Fairfax Media in December 2018.
Now it is moving to acquire the remaining 45.5% stake in the network which includes 2GB, 3AW, 4BC, 6PR and Macquarie Sports Radio.
The offer values Macquarie Media at $275.4 million and will see Nine pay $113.9 million, at $1.46 per share.
The major shareholders of the network are Nine with 54.5%, adman John Singleton 32.4% and investment banker Mark Carnegie 3.6%.
Macquarie Media's board has recommended unanimously that shareholders accept the offer.
Hugh Marks, CEO of Nine, says the acquisition consolidates Nine’s position as the leading provider of news and current affairs content across all of the key platforms – television, digital, print and now radio.
“We are big believers in the power of Macquarie’s talk radio network and in its people," he says. "A team who together drive debate and speak up so often for so many Australians.
"We look forward to the future growth of the business with the full backing of Nine and to ensuring that the Macquarie Radio team have the support, infrastructure and clarity to be able to do what they do best.
“Together across our businesses we will be investing more than $400 million per year in providing Australians with premium news and editorial content. Entrenching Nine as the go-to place for all news needs for all Australians, across all platforms.”
The acquisition will be financed from cash reserves and existing debt facilities.
Hugh Marks, in an email to staff this morning, says: "There is real strength to be gained both for our people, and the audience we serve, from the breadth of our news and current affairs offering across television, digital, publishing and now also radio.
"While they are different brands, often speaking to different audiences, there are also clear opportunities for all of you to collaborate and make even better content when the story fits. Or to draw upon the resources of your colleagues where that make sense. And following the completion of the acquisition of Macquarie Media, radio will be no different."
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.