Credit: Gary Chan via Unsplash
Southern Cross Media Group has sold its 500,000 shares in Anthony Catalano’s View Media, a digital real estate business designed to compete with Domain and realestate.com.au, for just $1.
The offloading of the holding is seen as part of a cleaning out of non core assets by the new CEO at Southern Cross, Rohan Lund.
"We need to reset our costs quickly so we have the capacity to do what we do best," Lund told staff in an email in May.
Lund, a television executive, wants to see more hustle on revenue and a core focus on digital.
Documents lodged with corporate regulator ASIC show Southern Cross had 0.39% of View.
The shares were held by Seven West Media Investments, the investment vehicle of Seven West Media which was taken over by Southern Cross.
“The underlying value of the company's net assets per share will be increased as a result of the cancellation of the shares which are bought back under the buy-back,” View said in its filing to ASIC.
View Media, part of regional media group ACM, was restructured in April this year with the closure of real estate classifieds site view.com.au.
The VMG board said the decision to close was made to enable immediate profitability as the company restructures into four divisions.
View was launched by Catalano and Waislitz in 2023.
Catalano in March stepped down as chairman of the View Media Group and of regional publisher ACM as he faces charges of assault, false imprisonment and making threats to kill.
Southern Cross Media, with its Seven network and radio business, is cost cutting, eliminating up to 300 roles, in the face of a soft advertising market.
The company last month issued a profit warning, saying group revenue for the year to June is expected to be between $1.86 and $1.87 billion, about 2.5% below previous guidance.
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