Seven Sells Pacific Mags To Bauer For $40m
Seven West Media has sold publisher Pacific Magazines to Bauer Media for a reported $40 million as the television network shifts to a digitally focus strategy following $20 million worth of staff cuts from boss James Warburton.
Foreshadowed earlier this morning by the Australian Financial Review after they revealed the dollar amount Bauer would pay Seven for sale of Pacific Magazine.
Seven West Media has officially issued its agreement to sell Pacific Magazines to Bauer Media, announcing the sale in a statement, with the proceeds slated for debt repayment.
While the deal is still subject to approval by the Australian Competition and Consumer Commission, the sale will see Seven and Bauer enter into a commercial advertising deal, sharing content between platforms.
Over the next three years, Seven is set to receive $6.6 million in advertising from Bauer magazines, should the deal be approved by the national consumer watchdog.
Bauer Australia chief executive Brendon Hill said the company is delighted to combine their talent and resources with their’ most admired and respected industry peers’.
According to the Australian, Bauer’s new chief executive Brendon Hill had joked earlier this year about the Pacific Magazines deal, saying, ‘there’s been talks for ten years.’
In announcing the sale, Seven chief executive James Warburton said it aligned with the companies’ strategy to improve balance sheet flexibility and simplify the operating model to enable greater focus on growth initiatives’.
It marks the third deal struck by Seven West Media in the last week, following a merger with regional affiliate Prime Media and the $28 million sale of Western Australian radio business Redwave to Southern Cross Austereo.