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MediaWorks to merge with outdoor ad giant QMS

Author
NZ Herald,
Section
Business,
Publish Date
Thursday, 29 November 2018, 12:12p.m.
Michael Anderson, MediaWorks CEO. Photo / File.
Michael Anderson, MediaWorks CEO. Photo / File.

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.

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