Fairfax/Ten consider merger
A potential merger between Fairfax and Network Ten appears to be under consideration following a meeting between Fairfax CEO Greg Hywood, CFO David Housego, CIO Andrew Lam-Po-Tang and Ten's CEO Hamish McLennan (pictured).
The Australian is reporting the group met in Sydney last week to discuss a potential merger of the two publicly listed groups.
Fairfax downplayed the meeting telling The Australian “The media industry is a dynamic environment. In that context we meet everybody about everything. At this stage no meeting has any more status than any other.”
Were Fairfax Media and Ten to merge that would require the divesting of the radio division to comply with media ownership regulations. The possibility puts a new context around a Macquarie Radio / Fairfax Radio tieup which is looking more and more likely every day.
For any potential suitor of Network Ten, it is an opportune time to strike with the share price hitting record lows last week. Whilst there are signs of life from time to time with the ratings position, the overall Ten ratings are awful and revenue is heading south according to their annual report released last week.
Irrespective of what happens, the drums are starting to beat loudly that we're about to see some movement in ownership across the various media in Australia.