Fairfax considers divestment of Stuff following merger with Nine Entertainment
Fairfax Media Limited, the Australian and New Zealand media firm, has revealed its intentions to potentially reduce investment in its New Zealand news reporter, Stuff.
The media giant could go ahead with divestment following the completion of its merger with Nine Entertainment Company.
The Australian media firms released a trading update on 12 October, noting Stuff’s 16% decline in Australian dollars and a 15% decline in New Zealand dollars.
Stuff has seemingly been Fairfax’s – which covers newspapers, magazines, radio, and digital media – worst performer.
Fairfax, the owner of The Sydney Morning Herald and The Age, saw its total year-on-year revenues fall by 5%.
The company had previously intended to merge Stuff with the rival NZME, however this two-year old plan was rejected in September last year by the Court of Appeal.
The merger was initially rejected by the New Zealand Commerce Commission (NZCC) due to issues with competition.