The sale was scheduled for October 1, subject to conditions including approval from New Zealand’s Overseas Investment Office.
SEG said the acquisition would be funded through a combination of existing cash, a new senior debt facility from the Commonwealth Bank of Australia, and a fully underwritten placement to raise approximately $35m.
SEG chief executive Craig Hutchison.
SEG chief executive Craig Hutchison said the acquisition was the “biggest moment” in the company’s history.
“MediaWorks is New Zealand’s number one audio business, third biggest media business, and has an incredible connection with its market-leading audio audience,” he said in a statement.
“We have enormous respect for the business and see huge upside in driving growth in step with our content and services offering, and can’t wait to get to work with Wendy Palmer and her team.”
He told the ASX that the deal was “transformational” and would allow SEG to extend its sport, digital and entertainment “capability” to New Zealand.
SEG told the ASX that about $A5m in annual “synergies” had been identified. The acquisition was expected to be “materially accretive” to SEG’s earnings per share.
“On a pro forma combined basis and prior to identified synergies, SEG and MediaWorks generated combined Ebitda of approximately $A36m in the 12 months to 30 June 2026, increasing to approximately $46.1m after the $A5m of identified synergies.”
Palmer said: “Off the back of strong growth, this is a hugely exciting moment for MediaWorks – SEG is a media company that shares our relentless focus on audiences and customers, and their investment in our future is a strong vote of confidence in this team, our brands and the position we’ve built as New Zealand’s leading audio and digital business.
“Joining forces gives our team access to genuine scale and capability. We’re looking forward to what we can build together across the Tasman.”
MediaWorks, which also owns Mai FM, The Sound and The Edge stations and digital platform Rova, hired Jarden’s New Zealand banking team to manage the sale process.
Simon Barnett and Lana Cochrane-Searle host MediaWorks’ More FM breakfast show.
Last week, it was revealed that New Zealand publishing firm Stuff had missed out on buying MediaWorks – leaving Nova Entertainment and SEG as the remaining bidders.
Publicly listed SEG, whose major shareholder is Hutchison, had earlier exited direct ownership of New Zealand radio after selling its Senz sports radio network to the TAB in 2023.
The Australian company remains a major transtasman sports media player through its Australian radio, digital, events and sports rights businesses.
The former Senz network now operates as Sport Nation under TAB/Entain ownership.
SEG and MediaWorks ‘highly complementary’
SEG and MediaWorks said today that their two businesses were “highly complementary”.
“SEG brings Australia’s only whole-of-sport media platform, spanning premium sports rights, owned content, talent, team ownership, production and events. MediaWorks brings market leadership in music and entertainment radio in New Zealand.
“Together they create a single trans-Tasman platform that connects advertisers to fans across sport, music and entertainment, through radio, digital, podcast, TV and live experiences.”
In Australia, SEG – through its SEN brand – has a national network of owned and syndicated radio stations and holds broadcast rights across major sporting codes including the AFL, NRL, cricket, the NBL and the Australian Open.
In its statement, SEG said MediaWorks gave it a “ready-made platform to extend its sport, events and content offering into New Zealand, and a digital growth engine in rova”.
The MediaWorks sale
MediaWorks chairman Barclay Nettlefold and chief executive Wendy Palmer.
MediaWorks chairman Barclay Nettlefold earlier told Media Insider that he expected a sale to be confirmed by the end of September. “Quarter three is where we’re aiming for.”
“There’s no hurry – we’re just trying to make sure that we have the right process in place to ensure the best outcome for the business.”
MediaWorks has turned its financial performance around in recent years.
Nettlefold said this was down to a focus on people and “the right product to market”.
“I think Leon [Leon Wratt, director of content] and Wendy have done a great job in getting the content right. They have reshaped some of the radio networks very well.
“And we’re tracking above budget, which is fantastic to see.”
The Australian reported the company might sell for as much as $120m- $150m.
“I’m not going to comment on what the price is,” Nettlefold said.
He said the New Zealand radio market was more controlled than Australia. Here, there were just two big players – MediaWorks and NZME – compared with multiple networks across the Ditch.
“You don’t have as much competition in the music sector or in talkback, so you’ve got clear dominant players, whereas if you look at Australia, you might have three players that are fighting for the same money.”
He said MediaWorks had also made the call to exit news station Today FM in 2023 to focus on music. “ZB is too good.”
Editor-at-Large Shayne Currie is one of New Zealand’s most experienced senior journalists and media leaders. He has held executive and senior editorial roles at NZME including Managing Editor, NZ Herald Editor and Herald on Sunday Editor and has a small shareholding in NZME.