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Nine Entertainment Co ‘set for assets fire sale’

Industry rumours have accelerated that Nine Entertainment Co may sell some of its assets, possibly including all or part of ACP Magazines.

Today’s Australian Financial Review reports that a “fire sale” could be on the cards, citing the company’s inability to keep up with its debts.

As well as the Nine Network and ACP, the company also includes group buying site Cudo and the NineMSN joint venture.

Today’s AFR suggests that Nine Entertainment Co’s worsening position is in part because of “a major write down of the struggling ACP magazine business”.  

According to the AFR, Nine Entertainment Co recorded a $428m loss in the last financial year. This followed a $93m profit in FY 2010, a $913m loss in FY 2009 and a $1.2bn loss in FY 2008.

The story follows Matt Handbury’s comments to The Australian yesterday that he would be interested in buying ACP but was struggling to get the finance. Hanbury sold the Murdoch magazines business in 2004. He predicted ACP would go for $600m, based on ACP’s’s rapidly declining profits.

Informed speculation has suggested to Mumbrella that ACP has been quietly seeking buyers for its more niche titles, with a possible future strategy of focusing its efforts on its remaining mass circulation titles.

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