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Mediaworks puts TV unit on the block
Posted on Friday, 18 October 2019 09:43
New Zealand-headquartered broadcaster Mediaworks is planning to offload its television business and has appointed an advisor to the proposed deal.

The company said it has hired an unknown company to come up with a list of interested suitors and begin discussions with those parties.

Mediaworks noted that this process will be confidential and any deal would also involve a process of due diligence.

In addition to the TV unit, known as Three TV, the firm said it plans to sell its Flower Street property, which includes its TV head office and studios.

The location will be put on the block with a lease back option. This would enable the successful acquiror to continue broadcasting from the site.

Mediaworks will retain its radio and QMS operations.

Commenting on the decision to divest Three, chairman Jack Matthews asserted that this will enable it to concentrate on its other activities, which he noted deliver strong revenue and margin growth.

He also acknowledged that the free-to-air TV segment is a difficult one and has gotten more so over the last 12 months.

Chief executive Michael Anderson echoed these sentiments, saying that Three could be more sustainably operated under a new owner, with the ultimate goal of generating a profit.

Mediaworks claims to be the largest independent broadcaster in New Zealand, broadcasting to a viewer and listener base numbering 4.29 million across New Zealand.

The company’s television channels include Three, ThreeLife and the Edge TV, while in radio it operates under banners such as the Rock, More FM, the Breeze and Magic Music and its digital assets comprise and ThreeNow, among others.

There have already been 213 deals targeting television broadcasters announced worldwide since the beginning of 2019, according to Zephyr, the M&A database published by Bureau van Dijk.

Of these, the most valuable is worth USD 9.60 billion and took the form of an acquisition as Sinclair Broadcast, through Diamond Sports Group, agreed to pick up Fox Sports Net from the Walt Disney Company.

© Zephus Ltd