Nine Entertainment Corp (ASX:NEC) has sold its radio arm, including 2GB Sydney, 3AW Melbourne, and 4BC Brisbane, to the Laundy family for around $56 million, and will now use that sales cash – and plenty more from the coffers – to buy outdoor advertising business QMS Media for $850 million.
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The same “transformative” moves will see Nine ship away Newcastle’s NBN Television, handing the regional station over to WIN for $15 million.
(NBN will continue broadcasting in Newy – this finance editor’s local patch – for the next five years under the terms of the CY26 agreement.)
Nine will be some $600M out of pocket by the time the three-pronged deals go through, though the company has pledged to shareholders that the moves will both boost earnings and meaningfully hike the revenue coming in on the digital side of the business by more than 60% by the time CY27 is over.
“These transactions will create a more efficient, higher-growth, and digitally powered Nine Group,” said chief Matt Stanton, who masterminded the overhaul.
The media group’s helmsman declared: “This positions Nine well for the future, enabling the group to withstand industry disruption and deliver long-term sustainable value for our shareholders.” He also called the play “critical.”
Network top boss Tom Malone spoke to Nine Radio employees a little before 9am this morning, too, to flag any changes. He told workers, “The Laundy family value their staff as their most valuable asset, and we will be no different… they invested in us because they understand the power of talkback radio.”
A whole host of high-profile bidders had been interested in the ticketed radio empire, The Australian has reported today, including John Singleton, Sports Entertainment boss Craig Hutchison, and Aus Digital Holdings.
The Market Link understands the deals will close by June.
NEC heads into Friday trade at $1.09. Indicative price has then +1%.
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