ACCC To Review Nine & Fairfax Merger
The ACCC will reportedly conduct a 12-week review of Nine & Fairfax’s industry-shaking merger – resulting in a $4.2 billion media powerhouse, backed by Prime Minister Turnbull.
Considered the largest deal since last year’s media reform, the ACCC will assess whether competition will be significantly hampered.
As per afr, an ACCC spokesperson claims a review will analyse affects on consumers, readers, advertisers and content creators, following consultation with several industry insiders.
The commission claims the impact of technology on Australia’s media industry will be a critical part of its analysis.
CEO of the new entity, Hugh Marks, has expressed confidence the merger will be greenlit, with the ACMA also expecting regulatory acceptance.
Speaking on national radio, Prime Minister Turnbull has welcomed the merger, claiming it will strengthen Austalia’s TV, online and print journalism industry.
As reported earlier today, the news received a mixed reactions, with several Fairfax journalists affirming the 150-year old brand will no longer exist. Many are labelling the merger a ‘Nine takeover’.
Interestingly, shares in Nine Entertainment have taken a battering following the announcement, diving 8.33% to $2.31 around 1pm.
By contrast, shares in Fairfax Media have soared 10.65% to 85 cents, whilst Nine-subsidiary Domain has seen shares jump 8.63% to $3.34.
So after 150-plus years this is all we get: “I would like to thank everyone for their contribution to Fairfax” https://t.co/GHjXMRTX2f
— Kate McClymont (@Kate_McClymont) 25 July 2018
“The merged company will be called Nine”. I’ve spent most of my working life at Fairfax. I want to cry.
— Katharine Murphy (@murpharoo) 25 July 2018
Understand people’s concerns but being part of a more diverse group of brands could be a good thing for SMH, Age journalism. The pressure for scale (ie clicks) becomes a lot less acute. #fairfax
— Conal Hanna (@conalhanna) 25 July 2018