Australian Community Media executive chairman Antony Catalano.Credit:Peter Braig
This could give Mr Catalano one of the biggest positions in Seven's affiliate network and may secure him a bigger bargaining chip and the ear of the free-to-air metropolitan network's management as the planned merger between Seven and Prime plays out.
Seven revealed plans to merge with Prime in October and there was immediate speculation that the bid could be derailed by Mr Catalano,the executive chairman of regional newspaper group Australian Community Media. Seven insiders brushed off these concerns on the day of the deal.
Media sources said he had snapped up some shares from major shareholder and rival WIN Television owner Bruce Gordon,who was recentlyforced to reduce his holding after going above legal thresholds,and investment company CVC.
The merger will need to get approval from 50 per cent of shareholders and 75 per cent of votes cast.
Billionaire investor Alex Waislitz's Thorney Investment Group has a small stake in Prime. Mr Waislitzhelped back the $125 million purchase of ACM.
Sources familiar with Mr Catalano's thinking said he is now not looking to derail the bid but wants to ensure his newspaper business is involved in part of a broader media play. The former Domain Group chief executive took control of ACM from Nine Entertainment Co in July. Nine is the owner of this masthead.
Mr Catalano said in September that he does not believe there is room in the market for three regional TV networks and that thecountry media businesses are in "crisis" and need consolidation and a regulatory overhaul.