‘A good future for the licences and improved TV services’: Offer made for SCA’s regional TV stations
Southern Cross Austereo is getting closer to offloading its network of 96 regional television stations, as a small television company confirms it has made an offer.
According to the AFR, Australian Digital Holdings TV – a right-wing start-up that launched Alan Jones’ most recent talk show and produces around five hours of content daily from a Sydney studio – has engaged 333 Capital and law firm Squire Patton Boggs, and made a firm offer believed to be in the ballpark of $15 million.
“We have made an offer and are awaiting their decision,” a statement from ADH TV reads.
“Revenue is still strong for free-to-air regional television, despite the pressures of the times, and with improved cost-controls and investment in key markets, the group sees a good future for the licences and improved TV services for the regions.
“Regional markets need regional content. It needs to be more than a ‘box ticking’ compliance exercise.
“The consortium has extended what we believe to be a robust and compelling offer. However, we have yet to receive substantial engagement on this matter.”
No doubt SCA will be giving this robust and compelling offer its due consideration, given that Anchorage and audio competitor ARN pulled out of a proposed takeover of SCA in May, with the former citing the “continued decline in the trading performance of Regional TV… the further deteriorating outlook for Regional TV, and the existing long-term contractual obligation of SCA for outsourced TV broadcast transmission” as its reason for abandoning the deal.
John Kelly
In September, SCA chief John Kelly told Mumbrella they were in “active negotiations” to sell off the regional TV station.
“We’re not only just talking to people, but negotiating the outcomes,” he said.
“And we’ve got nothing binding, otherwise we would have announced that, so I would expect ‘months’ should be the timeline you should think about, as opposed to ‘weeks,’” he says, in terms of finalising a sale.
“Months doesn’t mean lots of months, you know, a few months…”
Southern Cross will hold its AGM on November 25.
Keep up to date with the latest in media and marketing
Got a tip?
Nathan Jolly is the Features Editor at Mumbrella. He joined the team in July, 2023.
Linkedin
Genuine question, is the $15m a typo? That’s one years ebita? Not surprising they haven’t received substantial engagement. I’m not a fan of what’s going on at Sca, but surely the tv assets are worth more than 15m.
User ID not verified.
Have your say