Nine sells radio assets to Aussie pub baron, buys outdoor advertising company QMS
Australia’s Nine Entertainment has sold its national broadcast radio assets for A$56m (US$39m) to high profile pub baron dynasty the Laundy family and acquired outdoor advertising company QMS Media for A$850m.
The protracted sale, which saw a wide range of suitors jostling for the media assets, will serve to free up capital for Nine and allow it to concentrate on its television, streaming and publishing assets in addition to its new investments.
Nine CEO Matt Stanton said the board and management had not taken the sale decision lightly and came after the months-long strategic review of the company’s assets.
Once the transaction is complete, which is expected to be prior to June 30, the Laundy family office will own radio stations 2GB, 3AW, 4BC, 6PR, 2UE, Magic1278 and 4BH.
The new owners of the radio assets are anticipated to maintain a long-term collaborative partnership with Nine, signalling plans to utilise 9News journalists on radio, showcase Stan Sport through Laundy venues, provide promotion and ad sales collaboration, as well as increased ad spend by Laundy on Nine properties.
“We’re also excited about developing an ongoing, strategic partnership with opportunities across marketing, advertising sales, podcasts and Stan Sport in Laundy hotels,” Stanton said.
The Laundy group, founded by Arthur Laundy, has amassed 40 pub venues across Australia which are worth an estimated A$1.75bn. Arthur’s son Craig, the manager of the Laundy family office, is a former federal politician, holding a ministerial position under the Liberal party in 2016- 2017.
“We see strong similarities between hotels and talk back radio. Patrons in our venues are at the centre of everything we do and we will have that same ethos with our listeners. Many of our patrons call the open lines and there are no better arbiters of what passes ‘The Pub Test,’” Craig Laundy said.
Stanton added: “It’s been heartening to see the passion and enthusiasm Arthur, Craig and the entire Laundy family have for radio and its powerful connection with local audiences,” he said.
Meanwhile, Nine’s step into outdoor advertising is also a move into the New Zealand market, as QMS Media is the parent of Kiwi company MediaWorks, which also holds significant commercial radio assets in addition to outdoor advertising.
Stanton said the trans-Tasman acquisition marked a critical milestone in its transformation plans. “This positions Nine well for the future, enabling the group to withstand industry disruption and deliver long-term sustainable value to our shareholders,” he said.
“QMS is a highly complementary media platform, offering Nine the opportunity to drive significant value by leveraging our premium content on QMS screens and creating an unparalleled advertising proposition that spans from ‘sofa to street.’”
The significant upheavals to the traditional Nine business model follow the sale last May of its real estate portal domain for A$1.4bnNine Entertainment set for $900m boost from property arm Domain’s sale to CoStar | News | C21Media.
