Seven denies talks with Fairfax, as court document suggests Ten tie-up with News Corp
McLennan
Seven has issued a statement denying it has been involved in talks with Fairfax Media, following revelations Kerry Stokes’ media company believes News Corp is planning to buy Ten when media laws are relaxed.
The statement from Seven follows reports last week in The Australian speculating a tie-up between Seven West Media and Fairfax and follows today’s reports on the release of legal documents in an ongoing court battle suggesting Seven told programmer John Stephens it believes News Corp Australia is planning to buy Ten, which became a factor in him changing his mind on the deal.
Hamish McLennan, CEO of Network Ten, wrote in a sworn affidavit he had called Stephens on March 8, after he had signed a contract with Ten to take the job as director of scheduling and acquisitions at the network asking Stephens how Seven executives had taken the news he would be leaving the company.
The Australian Financial Review reports Stephens replied: “They didn’t take it well. They asked me if I signed. I said yes, and they said, ‘Oh no, why did you do that? Don’t you realise that Ten is going to be bought by News Corporation and there will be a change of ownership. Are you insane?”
McLennan then replied: “There is no indication that they will do that. There has just been a lot of speculation in the market. In any case, it’s up to the government to change the laws.”
Ten had announced the veteran programmer, who has 40 years’ experience at Nine and Seven, would join the network a fortnight ago and McLennan said Stephens would be a critically important addition to the team as it looks to arrest a ratings decline.
Days later Stephens opted out of the job and Ten took Seven to court to fight for the programmer, with legal hearings set for mid-May.
Today’s statement from Seven:
Whilst it does not generally comment on rumours, Seven West Media Limited confirms that it is not involved in any discussions with Fairfax Media.”
Well, how about Fairfax buying Seven West? Makes sense…Fairfax has the strongest online assets in the country (and people) and Seven is number one broadcaster
User ID not verified.
And so we will go back to how it was in the 70s or 80s, with the Seven/Fairfax and Ten/News tie-up?
User ID not verified.
Yes Jack, seems like back to the future to me as well
User ID not verified.
Hard to see what shareholders get from these deals. TEN might benefit from connection to News’ globL programming via Fox. But would Fox? Is Seven improved by adding Fairfax? Hard to see how. Maybe the huge bureaucracy at fairfax might be cut but that’s hardly a benefit. Looks very might like news is promoting desk talk to make room for its next play. And Fsirfax is allowing silly propositions to get legs because they imply that someone might buy the business and all corbett to escape from his fate. Hard to see really.
User ID not verified.
Wouldn’t these need to be mergers rather than acquisitions (unless the acquirer funds it completely with borrowings) … Seven has a load of debt and Fairfax has spent the last 2 years reducing its. Ten is far from in a good cash flow situation. Newscorp is probably the most cashed up of all of them but can’t see them getting Ten at anywhere near the current share price given the small matter of Ten’s chairman being the son of Newscorp’s dominant shareholder and the share price dipping 80% in his tenure.
Lot’s of questions. Will be interesting to watch. Media industry is nothing if not irrational.
User ID not verified.
Fairfax has cut through the ranks and has small and effective management nowadays. They are clearly on their way with a leap in their share price since the half year results. Of course Seven wants them. What a shame they’ll be slowed down by geriatric TV guys.
User ID not verified.
@Bloz: the only people who would view Fairfax’s hierarchy as small and effective are in North Korea.
User ID not verified.
Numbers Man – clearly you can’t count then
User ID not verified.
Numbers Man, you neglected to mention that the entire North Korean population are also eating better than Fairfax shareholders who have seen their share portfolio still valued at 20% of what it was 2005 to 2007, despite a recent dead cat bounce (yum yum)
User ID not verified.