Streaming is the real reason ARN Media is plotting a breakup of Southern Cross Austereo
Welcome to a midweek update from Unmade. Today: Big moves in audio with ARN Media involved in a bid for Southern Cross Austereo.
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The real prize in ARN’s plan for SCA is streaming, not radio
Tim Burrowes writes:
The Australian Financial Review published a decent scoop last night: ARN Media has teamed up with Anchorage Capital Partners to bid for Southern Cross Austereo.
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Yes, the effective (though not ACMA-illegal) merger of SCA and ARN will help them compete with Spotify in the future. That makes more sense than this proposal being predominantly about ARN picking up Triple M (and the regional Hits) and jettisoning Gold. The two post-merger legal entities will likely be fairly evenly weighted.
And also yes, if ACMA and the ACCC approve this, Seven West and Nine will attempt to be next for very similar reasons.
While it would make a lot of sense for Paramount to buy SCA’s TV assets (particularly the Ten affiliates), I wouldn’t rule out a bid from ACM. If Seven West and Nine do functionally merge, the compatible ARN+SCA and ACM would both benefit from closer ties.
Great analysis, thanks Tim.