Sharechat Logo

NZME requests urgent Government action to protect news media and jobs in New Zealand given significant adverse impacts of COVID-19 on the sector

Monday 11th May 2020

Text too small?

NZME Limited (NZX: NZM , ASX: NZM) (“NZME”) has written to the Government today seeking urgent legislation authorising NZME, or its nominee, to acquire the shares in Stuff Limited by 31 May 2020. NZME is not seeking financial assistance from Government to support the purchase of Stuff.

NZME is taking these steps to advance its offer to acquire Stuff from Fairfax Corporation Pty Limited, a wholly owned subsidiary of ASX-listed company Nine Entertainment Co. Holdings Limited (ASX: NEC) (“Nine”) for $1*. On 23 April 2020, NZME and Nine agreed an exclusive negotiation period. With Government support, NZME is aiming to complete the transaction by 31 May 2020.

NZME has been engaging with the New Zealand Commerce Commission (the “Commission”) and has filed for clearance today requesting that the Commission consider the application under urgency. NZME fully respects the Commission’s processes. NZME recognises, however, that the clearance process involves certain necessary steps and those steps can take some time, even where an application has been sought under urgency.

NZME believes that the New Zealand media sector is too small for the current number of quality participants and consolidation is urgent in the face of dramatically declining advertising revenue and current general economic conditions. NZME continues to believe that it is the best owner for Stuff as it is best placed to preserve mastheads, newsrooms and jobs. NZME considers that in the current New Zealand media landscape, NZME’s acquisition of Stuff will not substantially lessen competition in any market.

NZME’s proposed acquisition of Stuff is important to the continued operation of a robust fourth estate and plurality of voice in this country. If approved, the acquisition should lower the costs of producing New Zealand news by combining NZME and Stuff’s business operations, with those savings supporting the future of New Zealand journalism by a local, committed national news media outlet.

*Excluding certain non-media assets but including Stuff’s material trading assets and liabilities.

Source: NZME Limited

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Reserve Bank of New Zealand Committed to Action as It Responds to Data Breach
MHM Automation Limited (NZX: MHM) Settlement of New Plymouth Building Sale
Napier Port Holdings Limited (NZX: NPH) First Quarter 2021 Trade Volumes
New Zealand Oil & Gas Limited (NZX: NZO) Mahato PSC Update - Oil Production
Michael Hill International Limited (NZX: MHJ) Update - Dividend/Distribution
Michael Hill International Limited (NZX: MHJ) Trading Update
Tilt Renewables Limited (NZX: TLT) Q3 December 2020 Quarterly Production Results
Mercury NZ Limited (NZX: MCY) Tiwai to continue operations through 2024
NZXO Announcement: Rollover of Fletcher Building Industries Ltd Notes - FBI150
Meridian Energy Limited (NZX: MEL) Rio Tinto confirms Tiwai Exit in December 2024

IRG See IRG research reports