Nine Entertainment in talks with US suitor CoStar | Australian Markets
Nine Entertainment has confirmed it’s in talks with a US suitor to promote its $1.6 billion stake in online real estate web site Domain.
The admission comes simply weeks after CoStar made a shock $2.7b all-cash takeover bid for Domain, Australia’s second-biggest real estate listings business behind REA Group’s realestate.com.au.
Domain is 60 per cent owned by Nine, which additionally owns the Nine free-to-air TV community, newspapers together with The Age and Australian Financial Review, and radio stations comparable to Sydney’s 2GB and Melbourne’s 3AW.
Nine has remained tight-lipped about any chance of a deal after CoStar’s strategy on February 21 and gave little trace of its pondering when it introduced its half-year outcomes days later.
But Nine on Friday stated it had now engaged with CoStar and its non-binding indicative proposal whereas suggesting it was fishing for a higher offer than the present $4.20-a-share bid.
“Discussions remain confidential and incomplete — including as to the price at which CoStar might make a revised proposal,” the published and publishing company stated.
“There is no certainty that the discussions will lead to a revised proposal from CoStar.
“Nine continues to assess the proposal, including the strategic value of Domain to Nine, with a focus on the best interests of Nine shareholders.”
Matt Stanton — who had been appearing chief govt of Nine because the departure of Mike Sneesby in September however was handed the job completely final week — instructed analysts on the half-year outcomes call that Domain was of strategic significance to Nine.
Domain’s significance to the group has grown as its media companies have come beneath stress from weaker promoting, overtaking the publishing arm in the December half-year because the group’s second-biggest earner after the tv arm.
Its revenue rose 14 per cent to $77.8 million earlier than curiosity, tax, depreciation and amortisation and now accounts for 29 per cent of group earnings. Domain’s income was 7 per cent higher at $217.2m.
In distinction, Nine’s group underlying earnings have been 15 per cent decrease at $268.4m on flat income of $1.39b. The group additionally introduced a extra $100m can be trimmed from prices.
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