NZME bid talk focus on radio business

Susan Edmunds

A potential bid for New Zealand media firm NZME by an Australian media company is ‘‘a toe or perhaps half a foot in the water’’ rather than a serious takeover attempt at this stage, one commentator says.

It has been reported that Southern Cross Media Group, which operates television and radio stations in Australia, wants to take over NZME, which publishes The New Zealand Herald and runs radio stations including NewstalkZB.

Southern Cross has made its interest in NZME’s radio stations known for some time but has previously said it did not want the print media brands.

NZME had reported that its trading revenue fell 2 per cent in the 2018 financial year to $378.4 million, while earnings were down 17 per cent.

Gavin Ellis, a former editor-inchief of The New Zealand Herald and media commentator, said the print business would be a problem for Southern Cross.

Getting the board on side with the purchase of newspapers in New Zealand, when that was not a fit with the existing business, would probably be a difficult task.

‘‘They have expressed no interest in newspapers in the past.’’

However, he said: ‘‘It’s a fact that The New Zealand Herald is still the single biggest contributor of revenue in the group.’’

But it would also be a problem for NZME to carve out its radio business, he said. ‘‘In the move to their new headquarters in [Auckland’s] Victoria St they’ve integrated their radio stations into the newsroom and integrated aspects of the radio programming into the newsroom as well.’’

Southern Cross has approached for comment.

The news follows a period of consolidation in the media industry. In Australia, Nine Entertainment has merged with Fairfax Media, the owner of New Zealand publisher Stuff Ltd. been