QMS to buy rest of Mediaworks in push across Tasman
Outdoor company QMS has expanded its footprint in New Zealand, announcing its intention to buy up the remainder of radio network Mediaworks in a deal that prepares it to pounce on rich contracts under tender from Auckland Transport (AT).
QMS has agreed to buy Oaktree Capital’s 45% stake in Mediaworks, subject to regulatory approval. Mediaworks is primarily a radio network, but through previous mergers with QMS also owns QMS’s former NZ OOH holdings, which include production operations.
QMS billboard near the Auckland Sky Tower
Mediaworks and NZME are the two dominant commercial radio networks in New Zealand, with Mediaworks claiming 2.46 million weekly listeners through its 10 stations. Mediaworks has been sorely challenged in recent years, posting a net after-tax loss of $99m last year (AUD)
QMS is touting the acquisition as an opportunity for advertisers to reach audiences on both sides of the Tasman.
Barclay Nettlefold, who is the chair of both QMS and Mediaworks, drew attention to the tender possibilities in a quote in the media release announcing the sale.
“With significant OOH tender opportunities on the horizon in New Zealand, we plan to leverage QMS’ reputation, track record and status as the partner of choice in digital OOH in Australia.”
Those opportunities include five OOH tenders from Auckland Transport for contracts that total more than $300m over the next decade. The tendering process was restarted in a shock move from AT in December, opening an opportunity for QMS against Ooh Media, the incumbent.
QMS bought into Mediaworks in 2019, when it still owned TV station Three, which was subsequently split off and sold to Warner Bros Discovery. It is itself owned by Australia’s Quadrant Private Equity.
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