Media law reforms gift more than a quarter of a billion dollars in value to broadcast businesses
The federal government’s weekend decision to relax media ownership laws and slash television and radio broadcast licence fees has delivered a windfall worth more than a quarter of a billion dollars to the value of Australia’s media companies.
Stocks in companies including the embattled Ten Network, Nine Entertainment Co, Seven West Media, Southern Cross and APN surged on the opening of the market, adding nearly $300m to their combined market capitalisation.
After being savaged by the market last week after revealing a $232m loss and warning its future was under threat, Ten rallied on news that broadcast licence fees would be slashed and media ownership laws relaxed under the government’s proposed reforms, opening the network up to a potential takeover bid by News Corp.
Shares in the Ten Network surged on opening. Source: Google
Ten closed the day up 20.45% at 26.5 cents giving it a market capitalisation of $95m. At one stage in early morning, the trading value of the company was up by 45%.
Prime Media Group was another winner on paper, with shares up 11.48% and the value of the company lifting to $124.55m.
Nine Entertainment Co’s value rose 5.34% to $1.20b.
Seven West Media rose 3.38% to finish with a value of $1.15b, while APN News and Media was up 5.08%, taking the value of the company to $764m.
Fairfax Media – which was revealed as the target of a takeover bid by a consortium led by private equity house TPG over the weekend – lifted 2.36% to give it a value of $2.49b.
No budget emergency then….
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You guys really despise this industry don’t you.
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