Posted October 14, 2019 15:00:00The sale of WA’s media group will see News Corp take over HawkeMedia and News Media Networks, a media group that covers WA, NT and the Northern Territory, for $1.5bn.
The deal, which is subject to regulatory approval, will see the sale of both the parent and subsidiary of News Corp’s News Corporation Australia (News) and News Corporation Communications Ltd (NewsCorp), which is owned by News Corp shareholders.
In addition, News Corp will acquire News Media Network Ltd, which operates as News Media One.
This will see it acquire a stake in two major media groups in WA, with Hawke media and NewsMedia Networks owned by the same parent, News Corporation.
The acquisition of Hawke will see two major WA media companies merged into one.
HawkeMedia will be renamed News Media Group and NewsNetwork will be sold to News Corp. This will create a company that will have a combined market share of more than 30 per cent.
Its board will be made up of News Media Chairman David Cossart and News Corp Chief Executive Andrew Bolt.
The acquisition will see news organisations and businesses that are involved in the Hawke business merged into News Corp News Network.
It is understood that the sale includes some of the news organisations’ assets.
News Corp owns the News Group, which covers WA and the NT, and owns News MediaOne, which runs the NT and WA news groups.
News Corporation will pay $1,100 a share for the group.
The group’s shares are valued at $4.2 billion.
Its share price will rise by more than 12 per cent to $2,320 in a matter of days.
In an interview with Fairfax Media, Mr Cossard said the news was “exciting”.
“It is a combination of three assets and it’s an extremely strong package,” he said.
“In terms of the market share we are in, we are going to have a lot of opportunities.
We have to see what the marketplace is going to look like.
What the marketplace will look like in the future is quite exciting.”
Hawke has reported a net loss of $6.5 million in the past 12 months.
News Corp has reported $4 billion in net profits.
News Media Networks has been a major part of WA media markets for more than a decade.
For the past six years it has been one of the state’s biggest media operators.
And the sale will give News Media a stake with an even greater reach than News Corp, which now has a 51 per cent stake in the group and has the power to block its rivals.
The company is a leading news agency in the NT with a global reach.