Nine has sold its radio business to billionaire hotel baron Arthur Laundy, in a deal worth $56 million. The sale includes Sydney’s 2GB, Melbourne’s 3AW, Brisbane’s 4BC and Perth’s 6PR.
It has also acquired QMS for $850 million and converted the regional station NBN from a wholly owned business to an affiliate, owned and operated by Nine’s regional partner Win.
CEO Matt Stanton made the announcement this morning before the market opened. “Today’s announcements mark a critical milestone in our Nine2028 transformation,” he said.
“These transactions will create a more efficient, higher-growth, and digitally powered Nine Group for our consumers, advertisers, shareholders and people. This positions Nine well for the future, enabling the Group to withstand industry disruption and deliver long-term sustainable value to our shareholders.”
84-year-old Laundy owns more than 90 pubs and hotels on the eastern seaboard, including Sydney’s Watsons Bay Hotel, the Sheraton Mirage on the Gold Coast and the Sofitel Noosa, and is worth in excess of $1.6bn.
The Australian reported that Nine staff have been invited to a series of meetings today, around the implications of the sale.
Today’s announcement comes after Nine spent the past month assessing formal submissions to take over the network, which it put up for sale last September.
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According to the Australian Financial Review, a consortium led by John Singleton was believed to have bid for the network, as did Craig Hutchison’s Sports Entertainment Group and Australian Digital Holdings.
Per The Australian, Hutchison was firmed as one of thee favourites to pick up the business but was fending off a late flurry of interest from two rival consortiums that had been flying under the radar, including a Florida-based investment fund.