News Corp buys APN's Aussie regional newspapers
APN wanted $A50 million for its regional newspapers
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Rupert Murdoch's News Corp has bought APN News & Media's Australian regional newspaper business for $A36 million, leaving APN to focus on its radio stations and outdoor advertising business.
In its 2015 financial results released in February, APN said it was looking to sell its regional newspaper business, which has a portfolio of 12 daily and more than 60 non-daily Australian regional newspapers, so it could focus on its digital growth strategy.
In those results, the Sydney-based APN reported a loss of $A10.2 million, including an $A48.3 million charge against the mastheads of its Australian regional newspapers, from a profit of $A11.5 million a year earlier.
The Australian Financial Review and The Australian, which is owned by News Corp, are reporting the deal worth A$36 million was completed last night.
The Australian said yesterday APN wanted $A50 million for its regional newspapers and that NewsCorp and Singapore-based social media marketing firm Fetch Plus had lodged binding offers when final bids were due on Friday.
APN received Overseas Investment Office approval yesterday for its plan to split out its NZME unit, which owns its New Zealand media assets, ahead of a potential merger with rival Fairfax Media's New Zealand operations.
Its shareholders last week overwhelmingly backed the plans to carve out the New Zealand unit as a standalone listed company, freeing up APN to focus on Australian radio and outdoor advertising business.
Analysts said exiting the New Zealand assets would allow APN to better participate in the consolidation of the Australian media sector, where media ownership laws are expected to be relaxed next year.
(BusinessDesk)
Sophie Boot
Tue, 21 Jun 2016
Tue, 21 Jun 2016
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News Corp buys APN's Aussie regional newspapers
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