The continuing uncertainty surrounding Nine Entertainment Co. Holdings Limited (ASX:NEC)'s leadership is hampering the media company's moves to offload its audio business, with potential buyers expressing doubt about whether the sale will proceed. With assets including the country's two most popular talkback radio stations, 2GB and 3AW, the possible sale of Nine Radio has been the subject of months of industry chatter.
The speculation intensified last month when the company's interim Chief Executive Officer, Matt Stanton, spoke of the need to streamline the organisation's -assets. Mr. Stanton said the Nine group was going to "refresh its operating model to more effectively leverage its portfolio of premium media assets, simplify business operations, reduce duplication, and provide greater accountability". Of Nine's core assets - television, audio, streaming, digital and print publishing business - the radio-led division is most likely to be put up for possible sale.
But The Australian has been told the drawn-out process to appoint Nine's next CEO has stymied discussions. Mr. Stanton has been acting in the role since September 30. One interested party, who asked not to be named, said: "There is currently no one for potential buyers to speak with.
"Nine needs a CEO with a clear path forward. "There's a lot going on (in the market), and not a lot going on (inside Nine)." Another stumbling block to a potential sale is that many advertisers aren't attracted to talkback radio's ageing audience, because of the challenges in making money from that demographic group. Speculation about potential buyers has ranged from Australia's richest person Gina Rinehart to former politician Joe Hockey, whose Bondi Partners consultancy firm boasts that it looks to "find commercial opportunities in challenging environments".
Craig Hutchison's Sports Entertainment Group, which operates SENTrack stations around Australia, could be a contender, while Seven West Media, which has a 20% holding in ARN, may also make a play for Nine Radio, if the price is right. Nine Radio would offer many more synergies than Seven currently gets out of ARN. A number of private equity players could be interested in building a media group including radio, while Australian Digital Holdings, the Alan Jones-backed business which is launching Newsmax in Australia, is believed to be in market looking for backers for several other media plays.
A Nine spokesman told The Australian: "We don't comment on market speculation".
