Business

Feb 21, 2018

Fairfax gets friendly with News Corp as it looks to cut losses in New Zealand

Fairfax's interim results are in and it's bad news for New Zealand, where the company is slashing 35% of its news paper holdings to offset tumbling profits.

Glenn Dyer — <em>Crikey</em> business and media commentator

Glenn Dyer

Crikey business and media commentator

As Fairfax Media announced it’s slashing 35% of its New Zealand newspapers in today’s interim financial report, the company made it clear it is open to a deal with its rival legacy media company, News Corp. CEO Greg Hywood revealed the bad news for the Kiwis while declaring that any deal “will be in the best interests of our shareholders”. That however is what previous Fairfax managers asserted whenever they did a dud deal, such as the loss-making takeover of Rural Press. But the bottom line from today’s report is that the board is open to overtures, with perhaps Fairfax being the mover rather than the receiver, as it was last year with the nibbles from bottom-feeding US private equity sharks.

Hywood left the very strong impression that Fairfax is open to offers from prospective dance partners, saying that the company’s “balance sheet is strong, with a net cash position for Fairfax’s 100%-owned entities”.

Free Trial

You've hit members-only content.

Sign up for a FREE 21-day trial to keep reading and get the best of Crikey straight to your inbox

By starting a free trial, you agree to accept Crikey’s terms and conditions

3 comments

Leave a comment

3 thoughts on “Fairfax gets friendly with News Corp as it looks to cut losses in New Zealand

  1. Decorum

    The NZ High Court is not “New Zealand’s highest court”, Glenn – there’s the Court of Appeal above it and then the Supreme Court above that.

  2. Don Willoughby

    Who should care about Fairfax when their AFR sets about throwing Alberichi under the bus.

    1. Evil Garry

      I don’t give a rats arse about the AFR Don…..but I do care about the smaller cities in NZ that will lose their only local newspaper due to a Fairfax hissy fit.

Share this article with a friend

Just fill out the fields below and we'll send your friend a link to this article along with a message from you.

Your details

Your friend's details

Sending...