News

News Corp to sell 50% stake in CarsGuide to US-based company

News Corp is set to sell its 50% stake in CarsGuide following the company’s merger agreement with US-based Cox Automotive.

Subject to regulatory requirements, shareholder approval and a capital raise, the transaction is due to complete in late 2016.

CarsGuideAuLogo

In Australia, Cox Automotive runs auction business Manheim and recently acquired Deal Solutions. Along with CarsGuide, the company will now form Cox Automotive Australia.

Lauren Williams, CEO of CarsGuide, said:“’This deal is recognition of the success CarsGuide has achieved in the automotive classified market over the past few years, establishing itself as a leading site amongst consumers recently achieving over a million unique visitors.

“Now as part of Cox Automotive Australia, CarsGuide will deliver and support our 2100 dealers with much needed alternatives across all parts of the value chain. The merger of Cox and CarsGuide will be transformative for CarsGuide and the automotive industry in Australia.”

Greg Duncan, former owner of Trivett, director of AHG and chairman of CarsGuide, said: “Cox Automotive offers a comprehensive range of products and services to the automotive industry, globally. Cox has the scale and breadth to be a game changer not only for CarsGuide but the Australian auto industry as a whole. Cox’s business is about partnering and supporting dealers, not competing with them.”

CarsGuide.com.au is currently 50% owned by News Corp and 50% by a group of 35 major car dealers.

News Corp has been approached for comment.

ADVERTISEMENT

Get the latest media and marketing industry news (and views) direct to your inbox.

Sign up to the free Mumbrella newsletter now.

 

SUBSCRIBE

Sign up to our free daily update to get the latest in media and marketing.