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Fairfax takeover proposed without Stan

Stan not included in TPG's proposal to take over Fairfax assets.

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Stan could be one of the first to be affected by new media rules with reports private equity group TPG is making an offer on Fairfax mastheads.

TPG’s $2.2b proposal is to acquire the lucrative Domain real estate business and Australian Metro Media, which includes The Sydney Morning Herald, The Age and The Australian Financial Review.

Under the proposal, Fairfax shareholders would retain current assets in New Zealand, the regional newspapers business, its stake in the Macquarie Radio Network and a 50 per cent share in the Stan streaming venture.

Some reports claim Nine would bid for the other 50% of Stan it does not own.

“There is no certainty that the indicative proposal will result in an offer for Fairfax,” Fairfax Media chief executive Greg Hywood wrote in a letter to staff.

“There is also no certainty that the indicative proposal is capable of being implemented given the complexity involved in splitting the businesses.”

The bid comes at a time when Fairfax are striking over proposed job cuts.

Source: ABC

5 Responses

  1. When I first heard about this, I wondered why TPG wasn’t interested in acquiring Stan since there would be considerable synergies between their businesses. Then I realised it was TPG Capital not TPG Telecom.

    Won’t be a good thing to have more major newspapers owned by US interests. The Foreign Investment Review Board will have something to say about that as I’m sure will the state and federal govts.

    1. As far as private equity groups go, TPG Capital is one of the better ones – sure, they’ll re-org, shift debt in, move capital & assets out, & get out, but they usually leave the husk at least nominally viable (e.g. Myers, Inghams). Better than Anchorage & DSE, for example…

      I wouldn’t wish TPG the telco on anyone – there’s definitely some business skill there, but I’m not sure how they’ve survived, let alone thrived. Better-than average industry skills, but average service & near-zero support has been their hallmark since they started as Total Peripherals Groups selling computers & bits back in the 80’s.

      1. Agree with both paras.

        “…I’m not sure how they’ve survived…”
        Same as Telstra during the era of the Three Amigos – customer inertia.

  2. Nine getting the other 50% of Stan would see it go down the gurgler. Already being influenced as it is with recent dramas and productions headlining in multiple categories despite many being available already on 9Now. It’ll become a catalogue for every show ever produced or shown on the network.

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