WIN and Nine engaged in merger talks as affiliation fee negotiations stall
Nine Entertainment Co and regional network WIN have reportedly entered exploratory merger discussions as they continue negotiations over their affiliation agreement.
According to a report in Fairfax media the proposal for the merger has come from WIN, which is currently at the pointy end of negotiations with Nine about continuing to carry its content. Nine is pushing for a hike in fees while WIN is crying poor and arguing it can not afford the price hike.
Talks between Nine and WIN would come just weeks after Nine and Southern Cross Austereo were forced to dampen media speculation about a potential merger between the two parties.
Many media players expect new Communications Minister Mitch Fifield to tackle media reforms including the reach rule, which currently prevents a merger between Nine and SCA or WIN, as part of a package which will be taken to cabinet and then parliament.
The hapless shareholders in regional TV networks can thank the Government for the fact that they own a diminishing asset. With the 75% reach rule still in place and capital city networks starting to live stream their channels they are between that rock and that other place.
Makes a lot more sense than Nine buying Southern Cross TEN and destroying the regional/metro affiliations viewers have known for almost 30 years.