- News and digital media company New Zealand Media and Entertainment (NZM) has signed a letter of intent with Google setting out terms for supply of news content
- The companies have entered a period of negotiations of up to 90 days to finalise the key terms of the agreement
- Based on key terms of the Google letter of intent, NZME expects earnings before interest, taxes, depreciation and amortisation for FY2022 would be in the range of $67-72 million
- NZM shares jumped 16.6 per cent on the announcement to $1.58
News and digital media company New Zealand Media and Entertainment (NZM) has signed a letter of intent with Google, entering a period of negotiations to finalise the key terms of the agreement.
The agreement consists of key terms for the proposed supply by NZME of news content for Google News Showcase and for other news products and projects relating to the final agreements.
The finalised agreement is expected to be for a minimum term of five years and the parties have up to 90 days to finalise agreements based on the key terms set out in the Google letter of intent.
NZME had also released its outlook statement, which included an expectation that earnings before interest, taxes, depreciation and amortisation (EBITDA) for 2022 would be more than in 2021.
Based on the key terms of the Google letter of intent, NZME expects that EBITDA for FY2022 would be in the range of $67-72 million.
NZME CEO Michael Boggs said the announcement demonstrates the company’s commitment to growing and evolving its digital platforms.
“We look forward to reaching final agreement with Google that will see NZME’s news content supplied and shared through Google programs, continuing to support the future of high quality, trusted journalism in Aotearoa,” he said.
A further announcement is expected to be made in relation to the outcome of the negotiation of the final agreements with Google and the commercial discussions with Meta, which owns Facebook and Instagram.
As a result of the letter of intent, NZME has notified the News Publishers’ Association of New Zealand and the New Zealand Commerce Commission that it will not be participating in any collective bargaining with Google unless both parties fail to execute binding agreements on the terms set out in the letter of intent.
NZM shares have jumped 16.6 per cent to $1.58 at 10:22 am AEDT.