Rupert Murdoch, Founder and CEO of News Corp just bought APN News and Media’s regional newspaper business, for A$36 million. This leaves just their radio stations and advertising businesses. APN said back in February it was looking to sell its papers.
The company owns 12 daily newspapers and 60 non-daily newspapers including the Daily Examiner (Grafton), Home Hunter guide and the Queensland Times.
News Corp already have a 15% stake in APN so shareholder approval to buy the company is crucial in order for it to be deemed as a related-party transaction. The Australian reported on Monday that APN wanted at least A$50 million for the company. They said they already had offers from Fetch Plus in Singapore and News Corp and final bids were due on Friday.
The company lost profits last year with their earnings dropping by 27% to $18.4 million. This lost profit was taken into account when News Corp gave in their final offer.
APN received approval from New Zealand Media and Entertainment who hold ownership of most New Zealand newspapers. Analysts also approved of exiting the NZ asset, allowing APN to become stronger in the Australian sector. The NZ commerce commission argued that traditional media companies should stick together and be able to compete with global giants such as Google and Facebook.
News Corp shares are now at $15.85, going down 0.50% on 21st June.