MediaWorks confirms sale of television business
AUCKLAND: Broadcaster MediaWorks has reached a binding agreement with Discovery Inc regarding the sale of MediaWorks’ freetoair TV business.
The transaction was subject to a number of precompletion approvals and is expected to be completed by the end of the year, the company said in a statement. No sale price was disclosed.
The deal includes entertainment channels Three and Bravo, streaming service ThreeNow, and multiplatform news and current affairs service Newshub, as well as other channels Three +1, Bravo+1, The Edge TV and The Breeze TV.
‘‘I believe Discovery is the ideal new owner to continue that momentum across the TV business,’’ MediaWorks chairman Jack Matthews said.
‘‘The sale will enable MediaWorks to have a greater strategic focus on the longterm future growth of its highly successful and marketleading radio and outofhome business, offering effective advertising solutions to our customers and great news and entertainment to our audiences.’’
In an internal note to MediaWorks staff, chief executive Michael Anderson said under the ownership of Discovery, Three, Newshub and Bravo would have a longterm home and continue to play a vital role in New Zealand society.
‘‘The MediaWorks radio and outdoor businesses are not part of this sales process and will continue to operate under the current ownership structure,’’ Mr Anderson said.
‘‘We will transition any remaining teams to Hargreaves St in the coming months which will be the home of radio and outdoor for years to come.’’
MediaWorks staff were further briefed on the transaction yesterday morning.
‘‘I want to reiterate our commitment to support each of you through this process,’’ Mr Anderson said.
MediaWorks claims to be New Zealand’s largest independent broadcaster, with an audience of more than 4 million across its television, radio and digital platforms. The company put the unprofitable television division up for sale in October last year.
In June, The New Zealand Herald reported that Discovery Inc was a frontrunner to buy the TV arm of MediaWorks.
Discovery has been active in the local market recently, last year picking up Top TV, which operates the Choice and HGTV channels in this market.
It also has a close partnership with payTV broadcaster Sky, which airs the Discovery Channel among its suite of entertainment options. In 2016, it tipped millions into Aucklandbased
RugbyPass, which was in turn sold to Sky TV in an August 2019 deal worth up to $US40 million ($59 million).
Founded in 1985, Discovery is a multibilliondollar mass media giant employing more than 9000 people globally. In addition to the Discovery Channel, it owns and operates Animal Planet, the Food Network and range of other media properties.
In New Zealand, Discovery operates a portfolio of six payTV channels including Discovery Channel, TLC, Animal Planet, Food Network, Living and Discovery Turbo and two freetoair channels HGTV and Choice TV.
Discovery president APAC Simon Robinson said, ‘‘This is an exciting moment for Discovery. MediaWorks TV is New Zealand’s leading independent freetoair commercial broadcaster, with popular shows and great brands.
‘‘With a 26year heritage in the New Zealand market, we are committed to drive MediaWorks TV’s future growth and success, delivering increased value to audiences and advertisers across all screens in New Zealand.’’
MediaWorks flagged the sale talks when reporting a $25.14 million loss for the year to December.
The loss was largely attributable to an impairment of $21 million, including a $12.13 million writedown on property, plant and equipment assets.
In May, the company announced that 130 staff were being made redundant in its radio and sales teams.
‘‘Covid19 has simultaneously changed the world and impacted our business in ways that we could not predict or prepare for,’’ chief executive Michael Anderson said in an email to staff at the time.
‘‘It has also completely changed the market that we operate in and this means that we must adapt to ensure our survival and sustainability in the coming months.
While MediaWorks and Discovery work towards completion of the transaction, Glen Kyne has been appointed general manager of TV, a role that will continue under Discovery after the sale is completed.
Discovery’s Australia and New Zealand operations will move under president APAC Simon Robinson.
Gareth Codd has been appointed acting commercial director for MediaWorks Group in the interim. Rebecca Kent, general manager of Discovery Australia, New Zealand and Pacific Islands, will continue to oversee the New Zealand payTV portfolio and freetoair channels Choice and HGTV, and the Australia operations. — The New Zealand Herald