Rinehart threatens to dump Fairfax
Mining billionaire Gina Rinehart has threatened to dump her stake in Fairfax Media if “unsuitable conditions” over non-involvement in the company’s editorial direction are not removed. Rinehart now owns nearly 20% of the company and is seeking seats on the board. If she suddenly sold her stock, it would be likely to put Fairfax’s share price – which is already trading close to an all time low – in a further plunge downwards.
Update: Shortly after opening today, Fairfax shares dropped to 53c, the lowest in the company’s history.
(Note: This story originally stated that Rinehart had increased her stake in Ten. In fact, today’s update to the ASX confirmed her increased stake as a result of the company’s fund raising.)
All the same, seems a bit odd that anyone would buy 20% of any company and then not be given a seat on the board?
This story has caused the share price to drop even further so she’s probably buying more. Who would be holding shares now except those who bought so high they can’t afford to sell.
I don’t think Fairfax is holding out on giving her a couple of seats on the board, commensurate with her shareholding.
But what she’s demanding is 3 seats + editorial control. Naturally they’re baulking at this.
I think everyone knows why she’s doing this, and it’s not to turn around a struggling newspaper for journalism’s sake. It’s to purchase a mouthpiece.
Gina gets pissed off that her poetry and her visions for Australia don’t get the attention she believes they deserve, and Fairfax would give her a vehicle to get her point across.
Let’s face it. No-one would buy Fairfax as an investment. But to Gina, it’s worth dropping some loose change if it means she gets to influence the media.
Having said that, I’m sure if she enticed Bolt and a few other Murdoch types across, she’d probably up the readership a bit. But surely no-one believes that’s actually why she’s doing this.
I’m guessing Gina’s getting her advice on owning media ownership from her mate John Singleton. If you want to see where the Herald’s heading tune into Singo’s 2GB.
It’s right wing propaganda at a level that belongs in the middle east, not Australia. It’s dishonest and it’s disgusting.
Her editorial interference would be less a problem if we have many independently owned l newspapers. The only alternative is Murdoch’s lot. And after the revelations of the Levison inquiry in the UK about Murdoch’s corruptive influence on politicians and actual corruption of the police, we do not need another right-wing media baron propagandising in the media.
does News have a charter of independence?
Nothing like a good old threat to get everybody’s back up!
Anyone who would release a statement with syntax as mangled as that above should not be anywhere near a newspaper.
Blank page …..traineeships