FAIRFAX Media has revived a possible sale of its underperforming radio network, with investment bank Macquarie under-taking an informal mandate to review options for the media company. At the same time the investment bank is again reviewing options for a partial spin-out of the media company’s Domain property listings arm, amid pressure from shareholders to unlock the more than $1 billion in value from the business.
The Australian understands Fairfax recently revived talks with ad baron John Singleton’s Macquarie Radio, owner of talkback radio station 2GB, on a potenal radio tie-up. While investment bank UBS has been involved in several Fairfax corporate deals over recent years, the Macquarie Group activity suggests the media company is taking a wider view of options… Although the ownership and concentration laws restrict Fairfax undertaking large deals, the company is considering offloading its underperforming radio business to enable a merger with a free-to-air television network.Under one scenario speculated by media executives, the merged entity could be sold to Nine Entertainment if the TV network were to acquire a stake in Macquarie Radio. Even so, the company has denied that a formal mandate has been signed.