Nine Entertainment has completed the sale of its broadcast radio assets - 2GB, 3AW, 4BC, 6PR, 2UE, Magic1278 and 4BH.
Hoteliers the Laundy Family Office paid $56 million cash. Nine also has a future cash tax benefit of $51 million.
Nine said it expects Laundy will be a long-term partner, with the family office intending to use Nine journalists on radio, showcase Stan Sport through Laundy venues, provide promotion and advertising sales collaboration as well as increase advertising spend on Nine properties.
Nine retains a growing presence in the digital audio market, leveraging the video production and distribution capabilities, through podcasts, text-to-audio and vodcast.
Arthur Laundy said he is confident that the family office ownership provides the stability, excitement and shared long-term vision to grow the business.
“What you’ll see in coming months is a transformation of our distribution and commercial strategy to realise the full potential of the incredible content our teams create around the clock," he said.
"Our ambition is to evolve into a digital media business – with live radio at our core, complemented by short and long form audio and video, distributed where and how people want to consume.”
The completion of the broadcast radio sale is part of Nine’s broader portfolio optimisation, including the acquisition of outdoor media business QMS, which completed last month, and the conversion of Nine’s TV interests in Northern NSW and Darwin to an affiliate structure.
Nine, when announcing the deal for QMS and the sale of its radio assets, described the company goal “to be Australia’s leading, digital first media business”.
The company in February announced a lift in profit in the half year to December. Net profit after tax before specific Items was up 30% to $95 million. Revenue was $1.14 billion, down 5%.
Total television revenue was down 14% to $508.2 million, impacted by comparison to last year’s broadcast of the Paris Olympics.
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