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Authentic Entertainment in talks to be bought out by Southern Cross Austereo

Regional media player Southern Cross Austereo (SCA) is in talks to buy out troubled branded content company Authentic Entertainment.

Authentic EntertainmentDespite media reports that a deal has been reached, a spokeswoman for SCA this morning confirmed that the negotiations were still ongoing.

“We are in discussions with Authentic Entertainment regarding the purchase of their assets,” said an SCA spokeswoman.  ‘We will make an announcement if and when the transaction is completed.”

The Music Network has reported that the company known for producing syndicated national radio programs Take 40, My Gen and Planet Vevo will shortly close its Sydney, Melbourne and Auckland offices.

Authentic Entertainment has had a troubled time of late with the company undergoing a major shake up in May of 2015 with a number of senior management leaving the business with founder Tony McGinn stepping back in to lead its media arm.

McGinn

McGinn

Then in October of last year Authentic chief executive John Wardley left the business following the formal launch of the firm’s new full service creative division, Authentic Creative Lab.

This was after the wider group announced losses of $2.8m for the 2014-15 financial year.

According to the Music Network, a small number of employees are expected to move over to SCA’s Goulburn St headquarters while the Authentic Entertainment brand will be dissolved.

Any deal is likely to have interesting implications for other stations with the potential for SCA to end up producing and selling My Gen show for its rival ARN.

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