Boucher puts Stuff back in Kiwi hands
Bold, brave and positive are some of the words being used to describe a management buyout of Stuff by the company’s chief executive Sinead Boucher.
Boucher has bought Stuff from its Australian owners Nine Entertainment for $1, ending months of speculation about a potential takeover.
She has signalled plans to develop an ownership model that would give staff a shareholding stake in the business.
Broadcasting Minister Kris Faafoi said the deal ‘‘maintains plurality and competition in New Zealand’s news media, as well as making Stuff New Zealand-owned again’’.
‘‘This is a bold move by Sinead and demonstrates her passion and commitment, both as a journalist and as chief executive of Stuff,’’ he said.
There is speculation that bringing Stuff back into local ownership could make it more politically palatable for the Government to put together a more comprehensive package of aid for the media sector that included Stuff.
‘‘In terms of the Government’s further long-term strategy to support New Zealand’s media sector and ensure a strong, sustainable, independent and diverse news media, we are continuing to work through the details with the aim of having more to say on that in the coming weeks,’’ Faafoi said.
Myles Thomas, director of lobby group Better Public Media, said the management buyout sounded like it had a lot of potential.
‘‘A news organisation owned by its staff is a really interesting idea – kind of like a co-operative almost – if that is what is being proposed.
‘‘There are a lot of positives. Is it going to work though, that is the big challenge I guess. I really admire the bravery involved.’’
Thomas doubted local ownership would influence the Government when it planned support for the sector.
‘‘The Government and NZ On Air has no qualms about giving money to foreign-owned media companies. Most television companies in New Zealand are foreign-owned now.’’
Stuff rival NZME had wanted to buy Stuff for $1, before Nine broke off negotiations.
NZME chief executive Michael Boggs said it believed a buyer ‘‘who will protect jobs, newsrooms and mastheads would be a positive outcome for New Zealand media and New Zealanders’’.
‘‘Many of us at NZME have enjoyed a constructive working relationship with Sinead over the years and all of us at NZME wish her the very best with this initiative,’’ he said.
The management buyout led by Boucher is understood to have been planned and executed very quickly, with the chief executive buying the company for a direct price of $1, and returning the company to New Zealand ownership.
The sale is expected to be completed by May 31. Direct proceeds from the sale will be NZ$1.
Nine, however, will retain ownership of Stuff’s Petone printing plant site and lease it back to Stuff. It will also receive an immediate and ongoing percentage of the proceeds from the sale of Stuff Fibre to Vocus, announced onmay 14.
‘‘As a result of the successful completion of the Stuff Fibre sale on 20 May 2020, Nine will receive 25 per cent of those proceeds before completion of the Stuff sale, plus up to a further 75 per cent over the subsequent 36 months, depending on the Stuff business’ ability to raise funding,’’ Nine said in a statement to the ASX.
‘‘We have always said that we believe it is important for Stuff to have local ownership and it is our firm view that this is the best outcome for competition and consumers in New Zealand,’’ said Hugh Marks, chief executive of Nine.
Because it is a management buyout and not another industry player, the purchase is not expected to require Commerce Commission approval.
Nine terminated negotiations with NZME in early May, after becoming convinced that a STUFF-NZME merger was not going to get past the Commerce Commission in an acceptable timeframe, it is understood.
It is understood the sale of Stuff Fibre to Vocus – which will continue to pay out to Nine for up to 36 months – was unrelated to Stuff’s sale, although Boucher agreed the timing was fortuitous.
Thrilled to have this chance
‘‘Today is an important moment for Stuff as a business,’’ Boucher said. ‘‘It is great to take control of our own future with the move to local ownership and the opportunity to build further on the trust of New Zealanders, who turn to us for local and national news and entertainment every day.
‘‘We are looking forward to working closely with staff, customers and our audiences as we embark upon what we believe will be a great new era for the business and the independent journalism it is built on.’’
In an interview with Stuff, Boucher said she was ‘‘really delighted’’ with the rapidly agreed deal, which was signed at midnight last night.
‘‘I’ve been with the business a long time in one way or another. I started out as a junior reporter in the North Canterbury branch office and I really care a lot about what happens to it, so I never dreamed this would be a position I’d be in. I’m thrilled to have this chance.’’
Her next step would be to consider the company’s ownership structure.
‘‘I’m really keen to give staff a direct stake in that, but it’s been a race up to this point for the past couple of weeks, so I’ll need to consider what that looks like and the potential ways that could work.’’
‘‘Particularly over this lockdown period I’ve been so grateful for the way
‘‘Today is an important moment for Stuff as a business.’’
Sinead Boucher
Stuff owner
staff have worked, sacrificed part of their salary and everything, so I was very determined to get Stuff into our hands and be masters of our own destiny.’’
Boucher would not comment when asked about any backers or other investors in the deal.
‘‘Not at this stage, but I think that in the next couple of weeks I’ll be able to disclose more of our plans,’’ she said.
When asked about strategic plans for the newly locally owned company – Stuff is a sprawling mixture of metropolitan, regional and community print titles, magazines, and prime digital assets in stuff.co.nz and Neighbourly – it is a case of wait and see.
‘‘The executive team and I have been already working on those plans, under the plan that we would still be retained by Nine.
‘‘But my team has only found out this morning as well, so now we will get together in the next week or so and really look at that again and decide what’s right for us now that we’re on our own and in our own hands.’’
Stuff last week won 20 categories at the Voyager Media Awards. The company was also named in the top 20 list in the 2020 Colmar Brunton Corporate Reputation Index.