Ooh Media APN merger may face ACCC hurdle, taking more than 50% of out-of-home market

December 15, 2016 10:00

The merger of Ooh Media and APN Outdoor will see the combined entities control more than 50% of the out-of-home market, but CEO of the new entity, Brendon Cook, remains confident the deal will receive the approval of the competition watchdog.

Cook: ACCC approval not a concern

Ooh and APN announced the merger, creating a company worth $1.6b yesterday, with shares in both companies rising almost 10% on the back of the announcement.

Speaking with Mumbrella, Cook said Ooh / APN would account for only 2.5% of the media market spend.

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Simon Canning

Simon Canning was Mumbrella's marketing and advertising editor from 2015-2017. In a career spanning journalism and communications over more than 30 years Simon has become one of Australia’s most respected analysts and commentators on the advertising, marketing and media industries. A regular commentator on radio and TV, Simon has also worked in media in the US and UK .

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3 COMMENTS

version 15 Dec 16

The argument that outdoor competes with all media is a strong one.

It’s also worth considering the impact on the people who own the billboards themselves. Harder to negotiate a fair rental with lower competition for space. Look up Bargaining Power of Customers under Michael Porter’s Five Forces model.

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Ben 15 Dec 16

The argument becomes a lot weaker when they say it should go through because Google and Facebook account for the majority of online spend, even though they would never merge.

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JG 15 Dec 16

Agreed version. I’d go as far as saying it is compelling.

And at least they pay tax.