Broadcaster MediaWorks and outdoor ad giant QMS Media today announced they have entered into an agreement to merge.
Staff at the broadcaster were told of the merger plan in a meeting this morning.
A report in the Australian Financial Review had suggested QMS had struck a cooperation agreement to explore the merger, which would see a new entity 60 per cent owned by MediaWork's hedge fund owner Oaktree and 40 per cent by QMS Australia.
The deal would create a new entity offering radio, television, digital and out-of-home advertising in New Zealand.
MediaWorks recently informed staff of a pending restructure of its radio business including merging RadioLIVE with its existing Magic network and rebranded as 'Magic Talk'.
The company's most recent result showed a net loss of $5.7m for the year to December on revenues of $300.2 million.
Oaktree has been looking to reduce its exposure to MediaWorks. Last year the US hedge fund was reportedly in talks with Southern Cross Austereo to sell the company's radio assets.