The Age To Own Big Brother?
Posted by Jess McGuire at 3:13 PM on July 3, 2007
What looked like a boring business-related article to us (our limited attention span is a problem, we know) might actually be a rather interesting media development, now that a Defamer Australia tipster has put a few things in perspective for us.
Fairfax Media and Macquarie Media have joined forces to break up Southern Cross Broadcasting in a deal expected to be worth $1.3 billion. Fairfax, owner of The Age, will return to the radio airwaves in Melbourne and Sydney after an absence of almost two decades.
Under the deal, to be announced as early as this morning, Macquarie Media will buy Southern Cross - capitalised at $1.19 billion - to get its Ten Network affiliate stations in regional Queensland, NSW and Victoria, as well as Seven Network affiliates in Darwin and Tasmania.
On completion of the purchase, it will sell to Fairfax the company's metropolitan radio business, including the 2UE and 3AW talkback stations plus talkback and music stations in Brisbane and Perth. The deal comes a month after Fairfax completed its $2.7 billion takeover of Rural Press.
Sources said the deal would also give the newspaper and online operator the Southern Star TV and video production assets, allowing it to add expertise to its expanding online video products, and a satellite music business that provides subscription music channels to pay TV networks Foxtel and Austar.
What does this mean? As our anonymous tipster so wonderfully put it, "Should this buyout succeed, Big Brother will essentially be owned by Fairfax. ... Awesome. However it will mean Fairfax has a 49% ownership of Endemol Southern Star (while it has FULL ownership of the other Southern Star arms). I don't really get business so I don't know why they won't have 50% or nuffin'."
Very interesting indeed!
A NOTE ABOUT TIP OFFS TO DEFAMER AUSTRALIA! - If you've sent something in and not heard anything back from us, don't be disheartened! The embarrassing truth is... we bugger up our email settings "back in the day" and while we can receive email, we're getting nothing but error messages when we try to reply. So rest assured we appreciate and love every bit of feedback and still adore the contributions from you guys, it's just your editor is a fucking idiot. We're arranging for someone to fix it next week though, which is nice news.

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