Nine ‘did a hell of a lot of due diligence’ on $850m QMS deal
Nine CEO Matt Stanton has told analysts the media company’s latest acquisition, which the market endorsed, was not “off the cuff” and came together after a year of work.
Nine Entertainment CEO Matthew Stanton has revealed that the media company’s $850 million acquisition of digital billboard business QMS from private equity firm Quadrant was a year in the making and was already waved through by the competition regulator last year.
The deal is part of a broader strategic refocus for the business, and coincides with the $56 million sale of Nine Radio to billionaire pub-owner Arthur Laundy and the $15 million sale of regional news station NBN Television to Nine’s largest shareholder WIN Corp.
Shareholders reacted positively to the news, with shares closing 5% higher. Barrenjoey analysts described the deals as “strategically sound…repositioning away from radio and regional TV towards outdoor [advertising]”.
Stanton told analysts on Friday that the QMS acquisition from Quadrant Private Equity has not been something “off the cuff we’re trying to do, this has been a year of work through”. When asked by an analyst if people should be skeptical about a purchase from private equity, Stanton said Nine has done “a hell of a lot of due diligence”.
