Fairfax agrees multi-million dollar Catalano deal
Fairfax Media has bought into the Antony Catalano-led Metro Media Publishing in a huge deal which sees the company attempt to shore up its real estate revenue.
Catalano started Metro Media Publishing’s Weekly Review in Victoria 18 months ago after being made redundant from Fairfax. By getting key real estate agents on board, the 220,000 circulation title quickly began to eat into the revenues of Fairfax Community Newspapers.
According to an announcement to the ASX this morning, the deal will see the assets of Fairfax Community Newspapers merged into Metro Media Publishing. Catalano will remain at the helm of the company and Fairfax will own a 50% stake. As well as putting the Fairfax Community Newspapers assets into the deal, Fairfax will hand over $35m. The deal values Metro Media Publishing at well in excess of $120m.
The announcement said: “In agreeing to the transaction, both Fairfax Media and MMP have committed to further development of MMP’s existing business model, which enjoys strong support from real estate agents. MMP will continue to provide real estate agents and their clients with the opportunity to participate in product development.”
Looks like the real estate industry owns its advertising channel?
Good on Antony and Greg I say!
They were both let go by Fairfax and have returned the favour in consummate style!
Big story to finish the year. It’s amazing FXJ get rid of people like Catalano who have obvious drive, energy and talent … and then have to spend just short on $100m effectively to get them and their creation back into the business. Says a lot really. Well done Antony and the City Weekly team.
So the Cat’s redundancy has now cost Fairfax $35M on top of a pay out so large he had to back up a truck to collect it. Congrats Antony.