CEO buys ailing New Zealand media giant for one dollar

Struggling New Zealand media giant Stuff Limited was sold in a management buy-out deal for the symbolic fee of NZ$1.00 (US$0.61), the group’s Australian owners Nine Entertainment announced Monday.

Nine said that Stuff chief executive Sinead Boucher would take over the company, which operates New Zealand’s most popular news website, stuff.co.nz, and titles such as Wellington’s Dominion Post and the Christchurch Press.

“The sale of Stuff is expected to (be) complete by May 31,” Nine said in a statement to the Australian stock exchange.

Boucher, who joined the Press as a reporter in 1993 and has spent most of her career at the company, said it was “a new era” for Stuff.

“It is great to take control of our own future with the move to local ownership and the opportunity to build further on the trust of New Zealanders, who turn to us for local and national news and entertainment every day,” she told stuff.co.nz.

The one-dollar price reflects the difficulties in New Zealand’s media sector, where COVID-19’s impact has slashed revenues already eroded by global internet giants such as Facebook and Google.

Stuff’s main domestic rival, NZME, had its own one-dollar bid for the company rejected earlier this month.

Stuff and NZME have both asked staff to take pay cuts due to the virus-induced downturn, with NZME cutting 200 jobs.

German magazine giant Bauer Media Group closed its New Zealand titles with the loss of 237 jobs last month, citing the “severe economic impact” of the pandemic.

Shares in Nine, which had been rumoured to be keen on offloading its New Zealand assets for more than a year, were up 2.9 percent at Aus$1.41 in early trading on the ASX.

Nine obtained Stuff when it acquired the company’s Australian owner, newspaper group Fairfax Media in late 2018.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

WORQ successfully raises RM10 million for next 5 years of growth

WORQ has successfully raised RM10 million in funds for the five years of growth ahead. Since it last raised funds in 2018,...

Fortesys moving forward strongly with Ruckus and Sophos

Fortesys Distribution Sdn Bhd yesterday held an online seminar (Webinar) recently, featuring presentations from Kuan Yong Chee, Senior Sales Engineer of CommScope...

Commerce.Asia: The ‘new norm’ is ‘shot-in-the-arm’ for local e-commerce industry

Since the Movement Control Order (MCO) was implemented six months ago, e-commerce has revolutionised consumer buying patterns with many households now turning...

Putrajaya announces new special assistance initiative package, Kita Prihatin

In a live televised press conference, Prime Minister Tan Sri Muhyiddin Yassin has announced that Putrajaya will implement a new assistance package,...

Suntrack Development unveils latest project, Tuai Residence

Property developer, Suntrack Development Sdn Bhd has unveiled its latest project Tuai Residence @ Setia Alam today. The 330-unit condominium project with...

Must read

Embed a proper digital literacy lesson in the school curriculum

By Afifah Suhaimi Amidst the drastic growth of internet users this year – with almost one million additions compared...

How to hire talent in a post Covid-19 world

According to the Global Startup Ecosystem Report from Start-up Genome, 72 percent of startups saw an average of 32 percent fall in...

Changing the way businesses operate with smart manufacturing

BusinessToday speaks to Srirangam Srirangarajan, Altair’s Managing Director for Southeast Asia, Australia and New Zealand on the importance of smart manufacturing and...

4 post-Covid predictions that will matter for years to come

By Sandeep Bhargava, Managing Director of Asia Pacific Japan (APJ), Rackspace Technology, Undoubtedly, the world of business has...