Media throuple on 'shuffle'!

There’s a major shuffle in play as the throuple recognised as New Zealand commercial media, NZME, MediaWorks and Stuff navigate ownership changes.

NZME has been under siege from a minor shareholder, Canadian-import Jim Grenon, who is attempting to take control of the board. His bid is currently being reviewed by the Takeovers Panel.

Discussions between NZME and Stuff to acquire some of their mastheads have ended as a result. 

Other rumours reported by the NZ Herald around Stuff suggest Trade Me as a potential suitor 5 years after CEO Sinead Boucher bought the company for $1. 

A collective sigh at MediaWorks as they are thrown a lifeline by one of its shareholders who have taken out Oaktree Capital Management’s stake in the company. Not only does this give the company a line of cash for growth, it removes the daily headache of a dissatisfied shareholder which must have been an agonising distraction for Mediaworks management.

The press release from MediaWorks as follows:

MediaWorks is pleased to announce that its long-term partnership with leading Australian digital outdoor media company QMS is being further strengthened, with QMS acquiring 100% of Oaktree Capital Management’s minority stake in the business.

This transaction will enable QMS to leverage its scale, reputation and expertise as the leader in digital out-of-home (“OOH”) advertising and will also allow MediaWorks to better serve clients on both sides of the Tasman.

Together, the combined QMS and MediaWorks radio, OOH and digital assets represent one of the largest diversified media platforms in the region with more than 800 staff across 30 offices.  In New Zealand MediaWorks engages with up to 3.5 million Kiwis across radio, digital and OOH, or 85% of the population, each week*.  QMS in Australia engages with over 20 million Australians across OOH, or 92% of Australians living in metro areas, each month**.

MediaWorks’ CEO Wendy Palmer said, “I’m excited about this milestone in our company’s history. Since 2019, MediaWorks has built a strong relationship with QMS, and this transaction marks the next chapter in our partnership.  Together, we are bigger, stronger, and better positioned to deliver market-leading audiences to clients across the region."

Barclay Nettlefold, Chairman of QMS and MediaWorks, said “This transaction materially expands QMS’ scale and presence in the New Zealand market. We look forward to leveraging our capability as leaders in digital OOH, particularly our expertise in delivering world-class street furniture networks such as the City of Sydney,  to deliver excellent outcomes for both brands and outdoor asset owners in New Zealand”.

“Combined with MediaWorks’ dominant position in radio and digital audio, the partnership creates a premier media platform for advertisers seeking to reach audiences across Australia and New Zealand”.

The transaction is expected to close in Q2 CY2025, subject to customary regulatory approvals. As part of the transaction, fresh funding lines will be established for MediaWorks providing increased flexibility for growth investment.