Nine Entertainment Co has sold its stake in South Cross Austereo (SCA) after only acquiring the 9.99% stake in the company in March.
The company sold its entire stake for $1.54 per share, an increase from the purchase price of $1.15 per share.
Hugh Marks, Nine CEO, said in a statement to the ASX: “Our relationship with Southern Cross has never been better. The early performance of our new affiliate agreement has surpassed our expectations, and we look forward to a long and prosperous relationship between our two companies.”
The proceeds from the sale will provide Nine with “increased flexibility in executing its strategy in the future” across free-to-air, SVOD, AVOD and other digital assets.
In July, Nine secured a regional affiliation deal that allowed SCA to broadcast Nine’s content to regional Queensland, Southern Australia and Victoria. Under the agreement, SCA was to pay Nine an affiliation fee of 50% of its television revenue.
The deal with SCA ended Nine's long-term affiliation with WIN, which ended on a sour note when the regional broadcaster failed in a legal battle to prevent Nine from streaming content on its 9Now AVOD player.
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