Green light for media deal
THE competition watchdog has approved the takeover of Fairfax Media as traditional media companies grapple with threats from technology titans such as Google and Facebook.
The Australian Competition and Consumer Commission said it examined several markets that would be affected by Nine Entertainment’s $4 billion buyout of Fairfax, and the impact on news and competition.
In a statement, ACCC chair Rod Sims said the deal “raised a number of extremely com- plex issues, and will likely reduce competition”.
But the watchdog had concluded that it was “not likely to substantially lessen competition in any market in breach of the Competition and Consumer Act”, he said.
The ACCC decision was welcomed by Nine chief Hugh Marks, who will lead the enlarged group if the deal is approved by Fairfax share- holders.
Mr Marks said it was “a clear acknowledgment of the changing competitive landscape in our industry, where the ability to compete across a variety of platforms and to engage different audiences is key”.
In a note to staff, he described the decision as a “significant milestone”.
“There will be some changes to leadership, locations, corporate teams and systems as we proceed to bringing these two great organisations together,” he said.
Nine will control the company, with a 51.1 per cent stake. Fairfax chairman Nick Falloon will be deputy chair of the combined group.
Fairfax chief Greg Hywood is expected to leave once the deal is complete.
Australia’s biggest media union, the Media Entertainment & Arts Alliance, warned any further cuts to editorial staff would be alarming, saying the ACCC’s decision was a “body blow to media diversity”.