Is it a merger or a takeover?
Technically,the deal was structured as a merger but in reality it is a takeover. Fairfax shareholders received Nine shares and some cash for surrendering control of their company and its assets. Nine chief executive Hugh Marks will run the enlarged business,Costello remains chairman and the name of the combined company is ... Nine. The Fairfax corporate brand will cease to exist.
The TV network's shareholders will own 51 per cent of the combined company,Fairfax's the remaining 49 per cent. Fairfax will contribute three members to the new board,including Falloon,who becomes deputy chairman.
How big a deal is it in terms of media in Australia?
Pretty big. The deal creates Australia's biggest domestic media company. It will have about 6000 employees,and a strong presence across print,TV,radio and online. Based on trailing figures,it will generate $3 billion in annual revenue,and earnings of $483 million (before interest,tax,depreciation and amortisation). Nine is the second-rated TV network in the country,while theHerald has the biggest cross-platform audience of any newspaper in Australia andThe Age has the fourth-biggest total audience.
What does it mean for readers?
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It shouldn't change anything.
How much say will Nine have in what goes intoThe Age,The Sydney Morning Herald andThe Australian Financial Review?
Nine's board has promised to sign up to Fairfax'scharter of editorial independence. That prevents the Nine board or management team from interfering in the newspapers,for commercial or political (or any other) reasons. It also gives editors full control over the papers. Marks has said the Fairfax papers will retain their distinct tones and target audiences.
What difference will it make to Domain?
Getting hold of Fairfax's 59.4 per cent holding in Domain was a key driver of the deal. The majority ownership stake in the real-estate platform now passes to Nine. Domain may get increased exposure on Channel Nine's TV shows such asThe Block as the new parent company seeks to grow the business and better compete with News Corp's REA Group.
Will the newspaper people start appearing on TV?
That remains to be seen. But Marks has told staff he has no objections to collaborations between the newspapers and other media companies including the ABC.
What happens if reporters want to critique something that Nine has done?
That's fine and Nine won't stand in the way of it.
Has anyone lost their job?
Yes. Nine has made 144 roles redundant across sales,product,and other support functions. Due to some duplicate roles being filled,this affected 92 people. Fairfax chief executive Greg Hywood and direct reports such as chief financial officer David Housego and general counsel Gail Hambly will also leave on Friday. Nine has said it won't cut any editorial jobs – for the time being.