Antony Catalano buys Nine’s regional newspapers
Former Domain CEO Antony Catalano has succeeded in his bid to buy the regional newspaper assets which formerly belonged to Fairfax from new owner Nine.
Nine has announced cash proceeds from the sale are expected to be around $115m, of which $10m will be paid in 12 months.
Catalano is back in the media owner game
Since Catalano’s departure from Domain – now majority owned by Nine – there has been some speculation about his next move, with some sources suggesting he may come after the company by setting up another publishing and listings rival to diminish its market share.
Other sources, however, have insisted this roll-up would not be a vindictive move, but just the logical next step for Catalano, given his history, experience and connections.
Catalano’s purchase – along with interests associated with Thorney Investment Group – is expected to be completed by 30 June of this year and includes 160-plus regional titles including The Newcastle Herald, The Examiner, The Border Mail and the Illawarra Mercury. It also includes around 130 community-based websites, and agricultural publications such as The Land, Queensland Country Life, and Stock and Land.
As part of the deal, Nine will receive up to $10m of advertising within ACM properties over three years.
Nine said the commercial relationships that have existed during Nine’s ownership of the business would continue. For a short time, this will include sharing publications between ACM mastheads, and Nine’s metro titles – The Age, The Sydney Morning Herald and The Australian Financial Review.
Nine’s CEO Hugh Marks said of the sale: “The sale of ACM is aligned with our strategy to exit non-core businesses and to focus on Nine’s portfolio of high-growth, digital assets. We will retain a commercial relationship with ACM and look forward to continuing to work with the business in areas where there are mutual benefits to both Nine and ACM.”
In a note to staff, Marks added that while the company was offloading the ACM assets, it remained a strong business unit.
“The reasons we sought buyers from three businesses – Australian Community Media, Stuff and Events – involved a need for Nine to focus on our core business, while ensuring that each of those three is well placed for their next cycle, with an owner who is strongly positioned to capitalise on the opportunities in front of them,” he said.
“With all three of these businesses, we have seen a number of interested parties involved in the process. This is because they are all good and profitable, with strong teams and a vision for the future ahead of them.”
He said the change in ownership was good for ACM and sets it up “well on the path for the future”.
Catalano has an extensive history with the company formerly known as Fairfax, which was purchased by Nine last year.
He was property editor and marketing director for Fairfax’s The Age before he was made redundant by the company. He went on to launch Metro Media Publishing in 2010, which included The Weekly Review – a rival to Fairfax’s The Melbourne Weekly.
In 2013, Catalano rejoined Fairfax as Domain’s CEO.
In January last year, after successfully spinning the company out as a separate entity on the ASX, Catalano resigned as CEO.
In November last year, reports emerged Catalano had made a last-ditch effort to thwart the impending merger of Nine and Fairfax. Despite accusations the move could be a deliberately planned 11th-hour attack, Catalano insisted his attempt to purchase Fairfax was genuine, and borne from his long history with the company.
Catalano also has a stake in Domain’s biggest client – media agency Tomorrow/ Media Plus. Amongst other things, the agency purchases media placement for developers and real estate companies, who collectively are Domain’s largest client.
Party time at the Cats new apartment in Melbourne.
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I’m assuming he didn’t personally buy it? Any clue on where the funding is from, or are we re-hashing a press release?
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Hi Uncle Drew,
The facts I have thus far are in the story. ACM is being acquired by a company controlled by interests associated with Antony Catalano and Thorney Investment Group. While that particular line is indeed taken from a release to investors on the ASX, the story itself is 641 words, while the release to the ASX was a mere five paragraphs.
If more information comes to light, I’ll be sure to let you know.
Vivienne – Mumbrella
It would seem that The Cat hasn’t used up his nine lives just yet then……
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Nine can’t believe their luck! $115m for dying newspaper business.
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I’ll just leave this here:
https://www.afr.com/afr-magazine/2018-afr-rich-list-meet-alex-waislitz-australias-warren-buffett-20180413-h0yqig
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Well said Vivienne. It’s been clearly stated for month that there are other investors
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Cool, thanks
UD
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Paid too much unless the purchase was to develop the press plant land, in which case it was a bargain.
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What is the political lean of Alex Waislitz and the Pratt family? Will they look to bring a refreshing counter to the local Murdoch drivel?
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You’ll find by removing these mastheads from under a greedy publishing parent they’ll make a tidy profitable sum when said parent isn’t syphoning off revenue to prop up their loss-making digital businesses.
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Regional newspapers??
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The property is worth much of that sum. As for the rest, Catalano will have his real estate crew ready to suck out whatever blood remains. I imagine that’s where the cash is coming from. Makes Fairfax tale look like a version of The Walking Dead really.
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Lots of (small) metropolitan ones. And some (agricultural) business press.
If someone wants to start a national media empire, this isn’t a bad start.
One can presume one of the aims is to sell real estate. But potentially quite a lot more.
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I hardly think Canberra times is hardly regional at all. I wonder if that includes canberratimes.com.au, that alone is valuable if you look at the traffic level. Instead of siphoning off traffic to SMH, i wouldnt be surprised if they start publishing the same stories nationally to grab traffic they have pushed to the majors. Any being in the capital of Australia, the stories derived from their would be invaluable. Does it remind you of Bezos and Washpo?
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Fairfax paid $155 million for the Border Mail back in 2006… that figure looks amazing now….
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Where can I find the full list of regional papers included in the sale?
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Chris, have a look here: https://www.acmadcentre.com.au/
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Hi cata
That’s what we called you in primary school.
Good to see you’ve done so well for yourself.
Woody sends his regards
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