Is Nine Entertainment (ASX:NEC) eyeing up regional broadcaster WIN?

The Nine Entertainment Co Holdings Ltd (ASX: NEC) share price is trending higher today after speculation emerged the company may purchase the WIN Corporation.

| More on:
streaming stocks represented by woman watching tv on tablet

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Nine Entertainment Co Holdings Ltd (ASX: NEC) share price was relatively unmoved today after speculation emerged the company may purchase the WIN Corporation.

After edging slightly higher throughout the day, the Nine share price closed flat at $3.00 per share. In contrast, the S&P/ASX 200 Index finished the day down 0.84%.

Let's take a closer look.

Nine wants a WIN

The Australian is reporting Nine Entertainment is in talks with WIN chair Bruce Gordon about absorbing his business into Australia's largest publicly listed media company. WIN Corporation owns the WIN regional television network, Crawford publications, and several local radio stations.

It is reported Gordon sold his shares in Prime Media Group Limited (ASX: PRT) to the owners of Rural Press Ltd. That move coming, allegedly, as Gordon looks to focus his attention on a potential deal with Nine. The Australian also reported that Rural Press is looking to take over Prime Media.

The article claims Gordon will be paid in scrips (i.e. a promissory note for shares in Nine). The paper speculates the deal could be worth anywhere between $50 million to $100 million.

Gordon, through company Birketu Pty Ltd, already has a 15% stake in Nine Entertainment. The Australian claims any deal will likely see Gordon own enough shares to be elevated to the board. If this were the case, it would be yet another change to the revolving door of the Nine board.

If Nine were to purchase WIN, it would likely end its affiliation deal with Southern Cross Media Group Ltd (ASX: SXL).

Other news

As previously reported, Nine is in the process of replacing long-time CEO Hugh Marks. Marks, whose tenure ends at the end of the month, is being replaced by Mike Sneesby. Sneesby is the soon-to-be-former head of Stan Australia.

Nine has been delivering results to its investors. Channel Nine show Married at First Sight is currently the highest-rated program on Australian TV. On top of this, a Nielsen report from January, as reported by Mediaweek, listed nine.com.au, the Sydney Morning Herald, and The Age as the number 2, 5, and 8 most viewed news websites in Australia, respectively.

Nine Entertainment share price snapshot

Since its merger with Fairfax Holdings, the Nine company has been in its strongest position yet. The share price has increased 114.5% on this time last year. Just last week, the media conglomerate broke its 52-week share price record, twice!

Given its current valuation, Nine Entertainment has a market capitalisation of $5.1 billion.

Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Share Gainers

These were the best-performing ASX 200 shares in March

These shares made their shareholders smile in March thanks to some very big gains.

Read more »

Businessman using a digital tablet with a graphical chart, symbolising the stock market.
Opinions

2 ASX shares I have been buying in 2024!

I’m a believer in the long-term outlook of these stocks.

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

a young boy dressed up in a business suit and tie has a cute grin and holds two fingers up.
Opinions

2 of my top ASX 200 shares to consider buying before April

I would happily exchange dollars for these two shares right now.

Read more »